Lithium has become one of the most sought after minerals in the world as lithium is a crucial component of batteries used in many different technology products. With the rise of electric vehicles, cell phones and other technological advances, the need for lithium has only increased, making it a product of significant economic and strategic value.
Lithium is an essential commodity for the manufacture of high-tech goods and the transition to renewable energy sources, which gives it strategic importance for a nation. A country’s competitiveness in the high-tech industry, an increasingly important sector of the global economy, can be enhanced by having access to a stable and secure supply of lithium. The development of jobs and the expansion of the national economy can both be facilitated by the production of lithium. India’s Ministry of Mines reported the discovery of 5.9 million tonnes of suspected lithium ore on its Twitter. This deposit alone makes India the country with the fifth largest lithium reserves in the world. The deposit is located in the Reasi district in the provinces of Jammu and Kashmir.
India now has the fifth largest lithium reserves in the world thanks to this deposit alone. The deposit is located in Reasi district of Jammu and Kashmir provinces. Batteries for electric vehicles (TVs), solar panels and electronic devices are all made from lithium. According to the World Bank, mineral production could increase by up to 500% between 2020 and 2050, which is necessary for the transition to clean energy. The World Lithium Association predicts a 6-fold increase in lithium demand between 2021 and 2040 due to growing demand for electric vehicles and renewable energy sources.
The only other lithium deposit in India is minor with a total weight of 1600 tons; this is the first significant discovery of lithium in the country. This revelation could help India in its quest to become a key player in the development of electric vehicles. At the moment, India’s manufacturing sector depends on lithium imports, mainly from Argentina, Chile and Australia. Nearly 80% of the total lithium consumed in the country is imported. With the discovery of a large reserve, India, which previously depended mainly on imports for the ore, is now optimistic. The fact that the majority of the world’s reserve is located in regions of high water stress makes this discovery even more important. India is a potential replacement as the ore requires a large amount of water to extract and the majority of reserves are in countries with water scarcity.
Due to Kashmir’s status as a disputed territory and the possibility of further escalation caused by this discovery, this could potentially impact the balance of power in the region. The discovery and use of lithium reserves in an area that still needs a reliable solution would be of great concern to Pakistan. This would have significant economic and geopolitical ramifications for the whole world, not just for the region. It offers Pakistan the chance to become a major lithium producer, which could give its economy and technological advancements a much-needed boost. For Pakistan, this is both an opportunity and a challenge. Pakistan has made considerable efforts to diversify its economy and reduce its dependence on imports. The discovery of lithium in Jammu and Kashmir is an opportunity for Pakistan to take a big step forward in these efforts, but it is also a cause for concern. If India controls the supply of lithium, Pakistan’s access to the ore could be limited, with serious consequences for its economic and technological development.