Lithium-Sourcing Roadmap for India

The report analyzes India's vulnerability in the lithium supply chain, characterized by high import dependence and geographical concentration of production and processing in China. It forecasts a significant surge in lithium demand between 2022 and 2030, driven primarily by electric vehicles and grid storage. To mitigate risks, the report recommends a multi-pronged strategy: streamlining domestic exploration in states like Jammu and Kashmir, forming strategic partnerships with mineral-rich nations such as Australia and Argentina, leveraging state-owned enterprises like KABIL to support private sector offtake, and incentivizing the development of domestic lithium refineries and recycling infrastructure.

• India's lithium demand is projected to grow substantially by 2030. Under an 'Accelerated Deployment' scenario, annual demand is expected to rise from 1,634 tons in 2022 to 40,499 tons in 2030; under a 'Business-as-Usual' scenario, it is forecast to reach 11,398 tons in 2030.
• The global lithium supply chain is highly concentrated, with the top three producing countries controlling over 90% of production and China possessing approximately 60% of global processing capacity.
• India is currently heavily reliant on imports for lithium-ion batteries, with import values increasing from USD 384.6 million in 2018–19 to USD 2.8 billion in 2022–23, primarily from China and South Korea.
• While India discovered 5.9 million tons of lithium resources in Jammu and Kashmir, these are at an inferred G3 stage, and the long lead time for production (averaging 16.5 years from discovery) means external sourcing remains critical.
• China employs a three-part strategy to maintain dominance: increasing foreign direct investment in overseas mines, using the Belt and Road Initiative (BRI) to partner with mineral-rich nations, and expanding domestic production.
• Australia and Argentina are identified as the most viable partners for India due to their openness to foreign direct investment and existing trade agreements, such as the Australia–India Economic Cooperation and Trade Agreement.
• Chile's new National Lithium Strategy mandates that future projects be public-private partnerships where the state holds a majority share, increasing the importance of government-to-government cooperation for Indian entities.
• Mining companies, particularly junior miners, prioritize long-term offtake agreements and equity investments over spot market deals to de-risk projects and secure low-cost debt financing.
• India has a comparative advantage in chemical processing that it should leverage to build domestic lithium refineries, potentially reducing costs by 70% compared to other chemical processing countries.
• India's membership in the Minerals Security Partnership (MSP) provides a network of allies to diversify supply chains, though it requires alignment with high environmental, social, and governance (ESG) standards.

APA

Goel, S., Moerenhout, T., Sharma, D., Raizada, S., Kumar, P., Brunelli, K., Jiang, C., Lee, L., Nilson, A., Wang, Q., & Xu, H. (2023). Lithium-Sourcing Roadmap for India. International Institute for Sustainable Development. https://www.iisd.org/system/files/2023-09/india-lithium-sourcing-roadmap.pdf

Chicago

Goel, Siddharth, Tom Moerenhout, Deepak Sharma, Swasti Raizada, Prashant Kumar, Kevin Brunelli, Chengxi Jiang, et al. Lithium-Sourcing Roadmap for India. International Institute for Sustainable Development, 2023. https://www.iisd.org/system/files/2023-09/india-lithium-sourcing-roadmap.pdf.

Wikipedia

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BibTeX

@techreport{goel2023lithiumsourcing, author = {Goel, Siddharth and Moerenhout, Tom and Sharma, Deepak and Raizada, Swasti and Kumar, Prashant and Brunelli, Kevin and Jiang, Chengxi and Lee, Lilly and Nilson, Anja and Wang, Qi and Xu, Huiying}, title = {{Lithium-Sourcing Roadmap for India}}, institution = {International Institute for Sustainable Development}, year = {2023}, month = sep, url = {https://www.iisd.org/system/files/2023-09/india-lithium-sourcing-roadmap.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }