As more and more advanced and developed nations are adopting a safer and cleaner future – by trying to find an alternative to the diesel and gasoline based engine – they are making a switch to the battery driven EV or electric vehicles. Now the battery is of significance in this context as the major components of the batteries include Lithium , critical minerals like Nickel , Cobalt and REMs – or rare earth minerals – something that India doesn’t have much reserve of under the crust and hence our EV / Clean Energy sector is still largely dependent on foreign suppliers for the raw materials.

As the recent budget highlighted , India looks pretty keenly to establish herself as one of the global leaders of green energy – with 35000 Cr in budget grants , 16000Cr in green bonds declared by RBI this fiscal year and with an incentive to local battery manufacturing MSMEs and research organizations to search alternatives for critical mineral dependency. However , there comes a sudden change in scenario as the Indian Ministry of Mines on Thursday declared the news that the GSI – Geological Survey of India indicated the presence of about 5.9 million tones of Lithium and other mineral deposit in Salal-Hainama area of Reasi district of Kashmir – a discovery that will have a huge impact on India’s future as a zero net emission nation but also in import – export policy of the country .

Not only Li – there was also presence of Gold and 51 other minerals – something that instills and aligns with India’s self sufficient policy of manufacturing – as the raw material cost will drop significantly , maximizing profits. Not only that – the discovery might also attract foreign investors to contribute to the EV boom India is aiming for.

Analysing the market for almost past half a decade – one thing is clear – he who controls the fuel and energy sector controls the global economy – take US hoarding oil barrels and Middle East suddenly getting rich with the discovery of oil just beneath their barren desert lands. If the past century was about petroleum or other fossil fuels – it might be safe to say that this century belongs to the dominance of Li base batteries – so it was termed “ future energy currency “ by Michio Kaku – in the COP22 summit.

With trade relations tensing between China – the present kingpin of the EV battery market – this indeed comes as a boon to India as it plans to decrease dependency and cover supply chain vulnerability as it gives India a strong foothold in the Li market – once regarded as the most impactful market by Elon Musk – as when Li price rose in FY22-23 , the richest man on the earth bemoaned it as “ Tesla’s biggest headache “ .