COAL
INDIA EYES LITHIUM IN CHILE - ECONOMY
News: State-run
Coal India (CIL) is considering the exploration
and extraction of lithium from the salt flats of Chile.
What’s
in the news?
CIL has expressed its interest to
the Chilean government and submitted an expression of
interest in response to the Request for Information (RFI) issued
by Chile for developing projects related to lithium exploration, extraction,
and processing.
Strategic
Partnerships
- CIL has signed non-disclosure
agreements with companies from various countries to assess the
feasibility of potential investments in critical mineral projects.
Chile’s
Lithium Reserves
- Chile holds
half of the viable lithium reserves globally and is
the world’s second-largest lithium producer, accounting for
about 36% of the global trade.
Opportunities
for Investment
- In March 2024, the Government
of Chile announced new opportunities for private sector
investors in lithium exploration.
- Investors can partner with
existing State-owned entities or make a completely
private investment, depending on the salt flat or type of business.
- Under its National Lithium
Strategy, Chile issued the RFI to invite both domestic and foreign
companies. Through special lithium operation contracts, the
country will offer mining blocks for the exploration and extraction of the
critical mineral.
These
steps highlight Coal India’s proactive approach to diversifying its resources
and tapping into the lucrative lithium market, which is crucial for the growing
demand in battery technology and electric vehicles.
Lithium
in India
- Current Status:
- Import-Dependent:
India imports all its lithium needs.
- Top Import Sources:
Hong Kong, China, and the US.
- Geological Surveys:
- Projects by GSI:
The Geological Survey of India has conducted 19 projects on lithium in
the last five years.
Potential
Reserves: Preliminary exploration in Jammu and Kashmir
indicates around 5.9 million tonnes of lithium.
Why
is Lithium Important?
- Critical for New Technologies:
- Ceramics
and Glass: Used to improve the strength and
durability.
- Telecommunication
and Aerospace: Essential for lightweight and
high-performance materials.
- Lithium-Ion Batteries:
- High
Energy Density: Essential for long-lasting
batteries in electronics and electric vehicles (EVs).
- Lightweight:
Reduces overall weight, crucial for portable electronics and EVs.
- Industrial Uses:
- Lubricating
Grease: Enhances performance in
high-temperature environments.
- Rocket
Propellants: High energy additive for more
efficient propulsion.
- Optical
Modulators: Used in mobile phones for
improving performance.
- Nuclear Applications:
- Fusion
Reactions: Acts as a converter to tritium, a
raw material for thermonuclear reactions.
- Prescribed
Substance: Under the Atomic Energy Act, 1962,
due to its role in nuclear applications.
Global
Lithium Reserves and Production
- Sources of Lithium:
- Hard
Rock Mines: Extraction from spodumene and
other minerals.
- Brine
from Salt Flats: Extraction from salt flats and
lakes, predominantly in South America.
- Global Reserves:
- Identified
Resources: 89 million tonnes.
- Mineable
Reserves: 22 million tonnes.
- Top
Reserves: Chile, Australia, and Argentina
lead in lithium reserves.
- Production Statistics:
- Top
Producers: In 2021, Chile, China, and Australia accounted
for almost 90% of global lithium production.
- Leading
Producer: Australia is the largest
producer of lithium.
Source:
https://www.thehindubusinessline.com/companies/coal-india-eyes-lithium-deposits-of-chilean-salt-flats/article68487810.ece