India Targets Lithium Boom with New Exploration Blocks in Jammu & Kashmir.

The Ministry of Mines has initiated exploration at two additional lithium blocks in the Reasi dist of Jammu & Kashmir, aiming to confirm potential mineral deposits by the end of 2025, according to an official familiar with the matter.

The new exploration efforts, led by the Geological Survey of India (GSI), are in proximity to the existing lithium block in Reasi, where India’s largest lithium reserve of 5.9 million tonnes was previously discovered in the Salal-Haimna area. While one of the new blocks is adjacent to the current site, the other is slightly farther but remains within the district.

“We expect to have preliminary estimates of reserves in these new blocks by September or October, or at the latest by year-end. Exploration activities are progressing steadily,” the official said.

Lithium, often referred to as "white gold," is critical to India’s green energy transition. It is extensively used in energy storage systems, electric vehicles (EVs), lithium-ion batteries, and mobile phones. Currently, India relies entirely on imports for lithium, with China being a major supplier.

The Salal-Haimna block is undergoing further beneficiation studies to achieve G2-level exploration data before a new auction attempt. Previous auctions at the G3 exploration level failed to attract sufficient bidders due to challenges in lithium extraction, which is predominantly in rock, clay, or laterite form.

“Extraction activities of this nature are new to India, which has made industries hesitant. However, initial findings indicate that high-quality lithium can be extracted,” the official added. Beneficiation and extraction trials are currently underway in laboratories to address these concerns and build confidence among potential bidders.

India's intensified exploration efforts are part of its broader strategy to reduce dependence on lithium imports and bolster its capacity to support the growing demand for EVs and renewable energy storage.

HBL