The Global Lithium Boom : Can India Dominate the Race in 2025 ?

Lithium, often dubbed the “white gold,” has emerged as a cornerstone in the global transition towards clean energy. Its pivotal role in powering electric vehicles (EVs), renewable energy storage systems, and various electronic devices has catapulted its demand to unprecedented levels.

As nations vie for control over this critical resource, India’s position in the global lithium race is becoming increasingly significant.

Global Li Landscape in 2025 :

Here’s a country-wise breakdown of the Global Li+3 Landscape in 2025, presented in a table format with data on reserves, production, major projects, and key developments:

Country	2025 Estimated Reserves (Tonnes, LCE)	2025 Production (Tonnes, LCE)	Major Projects	Key Developments
Australia	6.3 million	~350,000	Greenbushes, Pilgangoora, Mt Marion	World’s largest producer, expanding capacity, focus on hard rock lithium
Chile	9.6 million	~200,000	Salar de Atacama	Major brine-based producer, state involvement increasing
China	2 million	~150,000	Yichun, Qinghai Lake	Leads in refining (~65% globally); mining expanding despite price drops
Argentina	20 million	~165,000	Sal de Oro (POSCO), Cauchari-Olaroz	Massive brine reserves, fastest-growing producer in 2025
Bolivia	21 million	<10,000 (pilot stage)	Uyuni, Coipasa, Pastos Grandes	Largest known reserves; minimal commercial production due to tech and political delays
Brazil	1.3 million	~8,800	Grota do Cirilo (Sigma Lithium)	Production up 86.2% YoY; targeting exports to North America and Europe
United States	1 million	~20,000	Silver Peak (Nevada), Thacker Pass	Strategic push to increase domestic production; permitting remains slow
Canada	930,000	~12,000	Snow Lake, Whabouchi, James Bay	High investment in spodumene mining; Snow Lake to start production in 2025
Zimbabwe	500,000	~3,000	Bikita, Arcadia	World’s largest known deposit in Bikita (~11 Mt ore); Chinese investment accelerating project timelines
Portugal	250,000	<2,000	Barroso Lithium Project	Europe’s largest reserve; awaiting regulatory clearance for expansion
Mali	120,000	Starting in 2025	Goulamina (Ganfeng Lithium)	Africa’s rising lithium producer; export-ready by late 2025
India	5.9 million (inferred, J&K)	0 (no commercial output yet)	Reasi (J&K), Korba (Chhattisgarh)	Significant 2023 discovery; mining licenses being issued, with potential production by 2027

Note: Production values are approximate and based on estimates for 2025; LCE = Li Carbonate Equivalent.

Global Reserves and Production :

As of 2022, the global Li resources are estimated at 98 million tonnes, with Argentina, Bolivia, and Chile—collectively known as the “Li Triangle”—accounting for approximately 53.1% of these reserves. Australia stands as the largest producer of Li, followed by Chile, China, and Argentina. China, while not a leading producer, plays a dominant role in the global lithium-ion battery manufacturing sector, processing over 65% of the world’s Li.

Strategic Importance of Li :

Lithium’s strategic importance is underscored by its essential role in the production of li-ion batteries, which are integral to EVs and renewable energy storage solutions. The global push towards net-zero emissions and the electrification of transportation systems has intensified the competition for lithium resources. Countries with secure access to Li are poised to lead in the green energy transition, making Li a critical geopolitical asset.

India’s Li Landscape :

As of 2025, India has made significant strides in identifying Li reserves, a critical component for electric vehicle (EV) batteries and renewable energy storage. While exploration is ongoing, the Geological Survey of India (GSI) has reported inferred Li resources in several states. It’s important to note that these are inferred resources, not yet classified as proven reserves, and commercial extraction has not commenced in most areas.

Li Reserves in India (2025) :

State	Estimated Li Resources (in tonnes)	Status of Exploration & Notes
Jammu & Kashmir	5.9 million	Discovery in Reasi district; auction attempts in 2023 and 2024 failed due to lack of bidders.
Karnataka	10,000	Preliminary exploration; no commercial production yet.
Rajasthan	6,500	Preliminary exploration; no commercial production yet.
Jharkhand	4,000	Preliminary exploration; no commercial production yet.
Andhra Pradesh	2,500	Preliminary exploration; no commercial production yet.
Chhattisgarh	Not specified	Ongoing exploration; no commercial production yet.
Gujarat	Not specified	Ongoing exploration; no commercial production yet.
Madhya Pradesh	Not specified	Ongoing exploration; no commercial production yet.
Odisha	Not specified	Ongoing exploration; no commercial production yet.
Uttarakhand	Not specified	Ongoing exploration; no commercial production yet.
Himachal Pradesh	Not specified	Ongoing exploration; no commercial production yet.
Arunachal Pradesh	Not specified	Ongoing exploration; no commercial production yet.

Key Insights :

• Global Standing: With 5.9 million tonnes of inferred Li resources, India ranks as the 7th largest holder globally, ahead of countries like China and Germany.
• Exploration Status: Most of India’s Li resources are in the early stages of exploration (G3 level), with commercial extraction expected to take 6–8 years.
• Auction Challenges: Attempts to auction Li blocks in Jammu & Kashmir have been unsuccessful due to a lack of qualified bidders.
• Strategic Importance: Securing domestic Li resources is crucial for India’s energy security and its transition to electric mobility.

India’s push for Li exploration aligns with its broader goals of achieving net-zero emissions by 2070 and enhancing the adoption of electric vehicles. However, significant challenges remain in translating inferred resources into commercially viable reserves.

Discovery of Li Reserves :

In February 2023, the Geological Survey of India (GSI) announced the discovery of 5.9 million tonnes of lithium-inferred resources in the Salal-Haimana area of Reasi district, Jammu and Kashmir. This discovery positioned India as the seventh-largest holder of lithium resources globally. Subsequent explorations have identified additional Li reserves in states such as Chhattisgarh, Jharkhand, Karnataka, and Rajasthan.

Challenges in Li Extraction :

India’s lithium extraction efforts in 2025 face several significant challenges, ranging from technical and environmental concerns to geopolitical and economic factors. Here’s an overview:

1. Technical and Infrastructure Limitations

• Lack of Expertise: India lacks domestic experience in lithium mining and processing. Unlike other minerals such as iron or copper, lithium extraction requires specialized knowledge and technology, which Indian companies currently do not possess.
• Processing Challenges: The lithium reserves in Jammu & Kashmir are primarily clay-based, a form that has not been commercially proven on a global scale. This uncertainty, coupled with insufficient beneficiation studies, deters potential investors due to high risks and unclear economic viability.
• Absence of Processing Facilities: India lacks the necessary infrastructure for lithium processing. Without domestic processing plants, companies may need to ship raw lithium ores to countries like China for refinement, which could lead to increased costs and dependency on foreign nations.

2. Environmental and Social Concerns

• Ecological Impact: Lithium extraction, especially through open-pit mining, can lead to significant environmental degradation. This includes soil erosion, water contamination, and biodiversity loss. In regions like the Himalayas, such activities could disrupt delicate ecosystems.
• Community Displacement: In areas like Salal village in Jammu & Kashmir, local communities express concerns about potential displacement and loss of livelihood due to mining activities. Historical precedents, such as the adverse effects of hydropower projects, fuel skepticism about the benefits of such initiatives.

3. Economic and Investment Challenges

• High Extraction Costs: Lithium extraction is capital-intensive. The average total cash cost for operating hard-rock lithium producers was estimated at $2,540 per tonne of lithium carbonate equivalent (LCE) in 2019. Given inflation and other factors, current costs are likely higher, making the venture financially challenging.
• Investor Hesitation: Previous attempts to auction lithium mining rights have faced setbacks. For instance, a second auction attempt saw no qualified bidders, primarily due to concerns over the project’s economic viability, lack of detailed data, and the exploration status of the reserves.

4. Geopolitical and Strategic Considerations

• Dependency on China: China currently dominates global lithium processing, accounting for nearly two-thirds of the world’s capacity. India’s reliance on Chinese processing facilities for refining lithium ores could pose strategic risks, especially in times of geopolitical tensions.
• International Collaborations: To mitigate these risks, India is seeking technical assistance from countries like Australia, Japan, and Russia to develop domestic processing capabilities. For example, Shree Cement is in discussions with an Australian firm to establish a lithium refinery, with an estimated investment of $600–700 million.

5. Policy and Regulatory Challenges

• Regulatory Framework: India’s current mineral reporting standards do not align with globally recognized frameworks, such as the CRIRSCO. This misalignment has led to investor concerns about the transparency and reliability of resource data, further deterring investment in the sector.
• Slow Progress: The path from discovery to commercial production for lithium mines typically spans four to seven years. Given the current challenges, India’s timeline to establish a robust lithium extraction and processing industry may extend even further.

India’s Strategic Initiatives :

India has undertaken several strategic initiatives in 2025 to bolster its lithium extraction and processing capabilities, aiming to support its green energy transition and reduce dependence on foreign sources. Here’s an overview of the key measures:

1. Customs Duty Exemptions to Stimulate Domestic Industry

In the Union Budget 2025-26, the Indian government announced full exemptions on Basic Customs Duty (BCD) for critical materials essential for battery manufacturing. This includes lithium-ion battery scrap, cobalt powder, lead, zinc, and 12 other critical minerals. Additionally, 35 capital goods for electric vehicle (EV) battery production and 28 for mobile phone battery manufacturing have been made duty-free. These measures aim to reduce costs for industries reliant on these materials, such as EVs, clean energy, and electronics manufacturing, thereby boosting local battery production and reducing import.

2. International Collaborations for Li Processing

To avoid dependence on China for lithium processing, India is seeking technical assistance from several countries. Discussions are ongoing with Australia, the United States, Bolivia, Britain, Japan, and South Korea. Additionally, executives from Russia’s TENEX, part of state-owned nuclear energy company Rosatom, have approached the Indian government, offering lithium processing technology and potential collaboration opportunities.

3. Partnerships with Latin American Countries

India is strengthening ties with resource-rich Latin American countries, particularly those within the “lithium triangle”—Argentina, Bolivia, and Chile. A historic agreement has been signed with Argentina to explore five lithium blocks. Indian companies, including Khanij Bidesh India Ltd (KABIL), Coal India, and Greenko, are investigating lithium reserves in Catamarca province. These collaborations aim to secure a stable lithium supply for India’s growing energy and mobility sectors.

4. Focus on Recycling and Sustainable Practices

The Indian government is promoting a “waste-to-wealth” approach by encouraging the recycling of critical minerals. The customs duty exemption on lithium-ion battery scrap is expected to boost the domestic recycling industry, which is more cost-effective and environmentally sustainable compared to virgin mining. Recycling consumes fewer resources and takes less time, translating to lower environmental impact.

5. Development of Domestic Processing Capabilities

India is investing in establishing domestic lithium processing facilities to reduce reliance on foreign processing. The National Manufacturing Mission is a pivotal step in bolstering the nation’s energy and manufacturing sectors. Additionally, the government is exploring opportunities for setting up lithium refineries with international collaborations, aiming to develop indigenous processing capabilities.

These strategic initiatives reflect India’s commitment to securing its position in the global lithium supply chain, ensuring a sustainable and self-reliant green energy future.

6. Domestic Policy Measures

• Battery Production Linked Incentive (PLI) Scheme: The Indian government has introduced an Rs 18,100 crore PLI scheme to promote domestic battery cell manufacturing, aiming to reduce dependence on imports and foster self-reliance in the EV sector.
• Mineral Exploration Initiatives: The Ministry of Mines has undertaken extensive exploration programs to identify and assess lithium and other critical mineral resources across various states.

7. International Collaborations

• Bilateral Agreements: India has signed memorandums of understanding (MoUs) with countries like Argentina to explore and develop lithium resources.
• Strategic Partnerships: Collaborations with nations such as Australia and Chile are being explored to secure access to lithium and other critical minerals.
• Khanij Bidesh India Ltd (KABIL): A joint venture between National Aluminium Company Ltd, Hindustan Copper Ltd, and Mineral Exploration and Consultancy Ltd, KABIL aims to facilitate the import of critical minerals, including lithium, to meet India’s growing demand.

Global Competition and India’s Position :

• Global Leaders: Bolivia, Argentina, and Chile collectively account for over 60% of the world’s known lithium resources, underscoring their strategic importance in the global supply chain.
• India’s Position: With 5.9 million tonnes, India ranks 7th globally in lithium resources. This discovery is pivotal for India’s ambitions in electric vehicle manufacturing and renewable energy storage.
• Emerging Players: Canada’s significant increase in lithium reserves, particularly in Quebec, highlights its growing role in the global lithium market.
• Strategic Implications: Countries with substantial lithium resources are poised to influence the global transition to electric mobility and renewable energy. India’s position offers both opportunities and challenges in securing supply chains and fostering domestic processing capabilities.

India’s Li discovery in Jammu & Kashmir marks a significant step towards reducing dependence on imports and enhancing self-reliance in critical minerals. However, translating inferred resources into commercially viable reserves will require substantial investment in exploration, infrastructure, and technology.

Conclusion :

India’s discovery of substantial Li reserves marks a significant milestone in its journey towards energy self-sufficiency and green energy transition. However, realizing the potential of these resources requires overcoming technological, environmental, and logistical challenges.

Through strategic domestic policies and international collaborations, India aims to position itself as a key player in the global lithium race, contributing to the advancement of sustainable energy solutions.

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