Let recycling lead India's quest for critical minerals like lithium

Amid today's global scramble, we need a resilient circular supply chain for these sought-after inputs

- Adhhan Wani & Vivan Sharan are public policy experts at Koan Advisory Group

In response to US President Donald Trump's tariff war on China, Beijing recently restricted Chinese exports of rare earth minerals like yttrium, dysprosium and terbium, critical minerals used in a wide range of modern-day electronic equipment. This has led to new pressures on the White House, particularly from the US defense, automotive and energy industries, each of which are impacted severely. The escalation presents an opportunity for India to reassess its critical minerals strategy, which primarily relies on nudging the private sector to invest in unproven reserves and on strategic public sector acquisitions of mines elsewhere in the developing world.

In February 2023, the Geological Survey of India estimated the presence of 5.9 million tonnes of lithium resources in Jammu. Last year, it confirmed high lithium concentrations in Chhattisgarh. But the initial hype faded quickly. Auctions for the Jammu reserves were unsuccessful because prospective bidders deemed extraction from clay deposits to be commercially unviable. The Chhattisgarh find fared better; India's first successful lithium and rare earth auction was won by a Kolkata-based mining company. However, experts note that extracting lithium from lepidolite-based reserves in Chhattisgarh will also be challenging compared to conventional brine deposits.

Critical mineral auctions were also held the same year in Tamil Nadu and Jharkhand, which were cancelled for lack of bidder interest.