India's first lithium refinery to be set up in Gujarat

The first lithium refinery of India will soon be set up in Gujarat to boost the nation's efforts towards electrification of transport. The refinery will process Lithium ore to produce battery-grade material.

The lithium ore will be imported from Australia and processed in the refinery. Manikaran Power Limited, which is one of the largest power trading and renewable energy companies in India will be investing heavily in the refiner,y, almost around Rs 1000 crore.

Manikaran Power Limited and Australian firm Neometals have entered into an agreement to produce lithium in India.

Why is the lithium refinery important?

The demand for lithium in India is driven by the nation's vision to become one of the largest electric car market of the world. India has set an ambitious target to increase the number of electric vehicles by 30 percent by 2030. 

India needs lithium to produce lithium ion batteries used for electrification of transport and storage of renewable energy. The Lithium refinery will help make Gujarat a hub for Lithium ion batteries, as there are already few Lithium ion battery manufacturing plants that are being set up in Gujarat. 

Key Highlights

•India imports all the lithium needed to make lithium ion batteries, as lithium is a rare element not usually found in India.

•India currently relies on  other nations like China, Japan and Taiwan for its electrical batteries.

•India is also looking to access raw materials like Lithium needed to produce batteries.

•The lithium-ion battery manufacturing refinery is expected to become operational by January-February 2021

What is Lithium?

Lithium is generally very light due to its low density and despite being metal it can be cut easily with a knife. Chemically, it is a member of the alkali metal group and, like other alkali metals, is highly reactive. It reacts rapidly with other substances.

India's main sources of lithium imports are countries like China, Hong Kong and Vietnam. Recently, India also gained access to Bolivian lithium reserves.

Background 

Manikaran Power had collaborated with Neometals in 2019 to tap the Mount Marion Lithium mine in Western Australia. The proposed project will help Gujarat secure the required raw material for domestic manufacturing of Lithium batteries.

According to the data tabled in the Parliament in February 2020, the import of Lithium-ion batteries almost quadrupled from 175 million in 2016 to 712 million batteries in 2018.