Let’s talk about the future of lithium extraction in India and which stocks could benefit from it.

What is Lithium?

Lithium is an important part of rechargeable batteries used in things like mobile phones, laptops, electric cars, and medical devices such as pacemakers. It’s also used in energy storage solutions.

How does India get Lithium right now?

India currently has to import most of the stuff needed to make lithium-ion batteries. In the financial year 2023, India spent ₹23,171 crore on importing these materials. In the previous year, it was ₹13,673.15 crore.

Didn’t India have Lithium resources underground?

Yes, in 2023, India found two places where it can dig up Lithium through mining.

In February 2023, the Geological Survey of India estimated that a spot in Jammu and Kashmir has about 5.9 million metric tons of Lithium, which is worth around $410 billion. But more studies are needed to know for sure if it’s good quality Lithium and can be extracted.

Also, in May 2023, another place was found in Degana in Rajasthan’s Nagaur district. It’s believed that these reserves are much bigger and could supply 80% of India’s Lithium needs.

Who can do the Lithium mining now?

In August 2023, India’s parliament passed a law that lets the government auction and mine these newly-discovered Lithium reserves, along with other minerals. Before this, these minerals were on a list of atomic minerals, so private companies couldn’t mine them. But now, private companies can get in on the action.

Are there any problems with Lithium Mining?

Yes, the first discovery is in Jammu and Kashmir, which is a place known for its geographical and cross-border tensions. Plus, there are likely to be environmental issues, and many people might have to move from there. So there are social, environmental, and economic challenges to deal with.

We hope the government can handle this smoothly and find a balance between social, environmental, and economic considerations.

Which stocks can benefit from Lithium Mining?

  1. NMDC
  2. GMDC
  3. SAIL
  4. MOIL
  5. Hindustan Copper
  6. NALCO
  7. OMDC
  8. Coal India

These are some of the companies that could see gains from India’s Lithium mining efforts.

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