World’s lithium supplies
Lithium, the silvery-white metal known for its crucial role in rechargeable batteries, has become a hot commodity in recent years.
The surge in demand is driven by the booming electric vehicle (EV) industry, which relies heavily on lithium-ion batteries.
This has raised concerns about the sustainability of our current lithium supplies.
Around 88 million tonnes of lithium are estimated to be present in the Earth's crust, but only a fraction of this amount is economically viable to extract.
Australia and Chile currently lead the pack, accounting for nearly 77% of global lithium production in 2022.
Global lithium production reached over 634,000 metric tons in 2022 and is projected to exceed 2.14 million metric tons by 2030.
However, demand is expected to be even higher, with estimates ranging from 2.3 to 2.45 million metric tons by 2030. This could lead to a potential supply gap.
Khanij Bidesh India Ltd (KABIL)
The Mines Ministry, through the state-owned Khanij Bidesh India Ltd (KABIL), has entered into a draft exploration and development agreement with Argentinan miner CAMYEN for possible acquisition and development of five-odd lithium blocks.
The company has also entered into a non-disclosure agreement with Chilean miner ENAMI for ‘possible exploration, extraction, processing and commecialisation’ of the mineral and appointed consultancy major PwC for identification of investable projects in Australia.
Incidentally, Latin American nations, primarily Chile and Argentina, account for 30–35% of the world’s supplies.
Chile, with 11% of the world’s lithium reserves, supplies 26% of the requirements; while Argentina with nearly a fifth of the global reserves supplies about 6%-odd.
Australia is among the other large producers globally.
Talks are in ‘advanced stages’ for acquisition of lithium blocks in Argentina.
The reported cost of the acquisition in Argentina could run into a ‘couple of hundred crore’ and the proposal would be put up for Cabinet approval.
COMMENTS