Mint Explainer: Why India needs to look for new battery minerals other than lithium

With its ambitious energy transition and electric mobility targets in sight, India has been scouting for minerals for battery manufacturing both within the country and abroad. Although sourcing of lithium from countries like Australia and Argentina have gained momentum in the past few years, efforts are also underway to diversify battery manufacturing technologies and chemicals away from lithium based chemistries.

Here is a look at the need for such diversification and what options India has on this front. Why is there a need to look for minerals other than lithium for battery manufacturing? Although lithium is the most commonly used mineral used for manufacturing batteries, known as Li Ion (lithium ion) batteries, there are concerns of low availability of the mineral going ahead given the high demand it attracts amid its requirement in electric vehicles and grid scale energy storage.

A report by, BMI, a Fitch Solutions research unit, showed that the world may face a supply deficit of the mineral by 2025 given its increasing demand across the globe. India has no domestic lithium supplies as of now. Although reserves have of late been found in Jammu and Kashmir, Rajasthan and Jharkhand, the commercial availability of the mineral would take time.

What is India's lithium import bill? As of now, India imports all its lithium requirement. In FY23, India imported lithium worth $33.05 million, higher by 49% from $22.16 million in the previous fiscal, according to data from the commerce ministry. The import of lithium ion batteries increased 56.84% to $2.87 billion in FY23 Although lithium imports do not form a significant chunk of India's import bill, the imports are likely to grow further.

What are the other minerals and chemistries explored? A key mineral being explored for manufacturing of batteries is sodium. Sodium ion batteries have come into the play, although not in a mass scale. Given the limited availability of lithium and the global race to acquire lithium mines in countries like Chile, Argentina and Australia, sodium ion batteries may prove to be game changer.

Other technologies being explored include aluminium air batteries and vanadium batteries and flow butteries. What are the efforts India taking to diversify and boost its battery sector? Along with looking for lithium sourcing and exploring domestic reserves, the Centre is at the same time looking for alternative minerals and chemistries.

A production linked incentive scheme for 'niche' batteries is already in the works wherein newer chemistries would be explored and research and development would be promoted. Battery companies are also looking at rolling out batteries with newer chemistries..