Unveiling the lithium Treasure: The Lithium Reserve Found in Degana, Rajasthan

Lithium, which is also referred to as the “white gold” of the energy transition, plays a vital role in rechargeable batteries for mobile phones, laptops, digital cameras, drones, renewable energy storage systems, etc. It also holds the powering future of electric transportation as the world is undergoing a transformative shift towards sustainable and environmentally friendly modes of transportation. Days after the lithium deposit was discovered in Jammu and Kashmir, the Geological Survey of India (GSI) explored another lithium reserve in Degana which is situated at Rajasthan’s Nagaur district.

Lithium reserves refer to the known deposits of lithium-containing minerals or lithium-rich brine resources that can be economically extracted and processed for various applications. Lithium is a highly sought-after metal due to its crucial role in the production of lithium-ion batteries, which power a wide range of devices and technologies.

It is believed and officials also alleged that these reserves are much bigger in quantity than the one found in the Union Territory and can meet 80 percent of the country’s demand.

Although lithium-ion batteries may come with a higher initial cost compared to other battery technologies like lead acid batteries but their extended lifespan and superior performance make them a cost-effective choice in the long run. Power grids are also using lithium batteries for storing renewable energy as they weigh about 50-60% less and have higher efficiency

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Hidden Treasures in Degana: Tungsten Hunt to Lithium Surprise

Exploration and mining activities often lead to unexpected discoveries and one such intriguing instance occurred in the Degana. The Nagaur district of Rajasthan showcases the unpredictable nature of geological exploration and the potential for remarkable finds as the team of Geological Survey of India (GSI) embarked on a mission to search for tungsten deposits, but to their astonishment, they end up on a significant Lithium reserve. The Renwat hill of Degana and its surrounding area was once used for the supply of tungsten in the country during the British rule period. The Britishers discovered Tungsten mineral in the year 1914 to make war material for the British Army during the First World War. Even after Independence, it was also used in the health and energy sectors for making surgical instruments.

How will this discovery impact the country’s economy and geopolitics?

This is the best and most interesting part because knowing the fact that the world is transiting towards a cleaner and more sustainable future, lithium has emerged as a crucial component for various technologies, from fuel energy to green energy, from air crafts to wind turbines, solar panels, electric vehicles, mobiles and every small and big chargeable device in the house, the use of lithium is increasing. With the exploration and identification of significant lithium reserves in Rajasthan, India finds itself in a unique position to tap into this valuable resource domestically.

Economic impact on India:-

Reduced Dependency on Imports: With the discovery of local reserves, India’s dependence on lithium imports from nations like Australia, Chile, and Argentina is set to decrease. This finding will enhance India’s energy security and reduce its reliance on external sources for meeting its lithium requirements.

Enhancing the Electric Vehicle Industry: It is highly advantageous for the country’s electric vehicle industry as it aims to have 30% of its vehicles(cars) electrified by 2030. This significant milestone can be achieved with greater ease and cost-efficiency. The local availability of this crucial resource will substantially reduce the production costs associated with manufacturing lithium-ion batteries, providing a substantial boost to the growth and affordability of India’s electric vehicle sector.

Job opportunities: The development of lithium reserves will create job opportunities in the mining and processing sectors, while also paving the way for downstream prospects in the manufacturing industry. India’s lithium production holds the potential to significantly contribute to the country’s GDP, generating new avenues for employment and economic growth.

Increased Tax Revenue: The Indian government stands to benefit from increased tax and royalty revenue as a result of mining and processing the lithium reserves.

Economic impact on World:-

Increasing Lithium Supply: The discovery of lithium reserves in India will contribute to an expansion of the global lithium supply, effectively meeting the surging demand for lithium-ion batteries.

Price Drop: The increased supply of lithium will lead to a drop in lithium-ion battery costs, making electric vehicles and other lithium-powered products more affordable and accessible worldwide.

Competition for Current Producers: This recent discovery of lithium reserves in India will spark a new wave of global competition among current lithium producers which will result in more innovative pricing practices as it will present both challenges and opportunities for existing producers around the world.

Diversity of supply: The concentration of lithium reserves in a small number of nations, such as Chile and Australia, has raised concerns about supply chain risks. However, the discovery of lithium reserves in India offers a solution to this challenge. By diversifying the supply chain, the finding of reserves in India decreases the risk of supply disruption.

The discovery of significant lithium reserves in Degana, Rajasthan, opens up a world of possibilities for India’s energy landscape and the global energy transition. As we move towards a sustainable future, the responsible development and utilization of these lithium reserves will be crucial. By balancing environmental considerations, social responsibility, and technological advancements, Degana’s lithium treasure can contribute to a greener and more sustainable energy ecosystem while driving economic growth and energy security for India and beyond. With the discovery of these new Lithium reserves, India could become a major stakeholder in the global supply chain.

Additionally, it reduces India’s reliance on lithium imports, enhancing energy security and contributing to the country’s self-sufficiency in lithium resources. Furthermore, the discovery positions India as a player in the global lithium market, presenting opportunities for international trade, technological advancements, and potential collaborations.