India wants to open up lithium mining in quest for batteries

The gov’t wants approval to amend laws to allow private firms to extract lithium, the key raw material for EV batteries.

India is seeking to change laws to allow private miners to extract lithium, the key ingredient for batteries used for electric vehicles and energy storage, as the nation aims to be more self-sufficient in green technologies.

Prime Minister Narendra Modi’s government wants lawmakers’ approval for amendments to existing policies in the current session of parliament, according to people familiar with the plans. Eight minerals, including lithium, beryllium and zirconium will be removed from a restricted list that currently prohibits production by private companies.

The changes would allow the government to auction permits to exploit lithium reserves, the people said, asking not to be named as the matter is not yet public. They are also aimed at reducing India’s dependence on imports for some key minerals, and to put the country in a better position to compete in the lucrative battery supply chain, according to the people.

A mines ministry spokesperson didn’t immediately respond to a request for comment.

India wants to add local manufacturing of a swathe of zero-emissions technologies as it chases a target of becoming carbon neutral by 2070 and to capture opportunities from the global transition to cleaner energy. The nation has pledged to build 500 gigawatts of clean power capacity by 2030, and the deployment of huge volumes of battery storage is seen as vital to enable round-the-clock use of renewables.

Government agencies have been exploring for lithium and discovered a small resource at a site in southern Karnataka state, according to the mines ministry. Still, to produce lithium at any meaningful scale and reduce reliance on imports, India would need to find and develop further deposits.

Agencies