Jammu and Kashmir lithium block auctions will be reopened by the government: Report

According to the news agency Reuters, the Indian government plans to arrange another auction for the lithium deposits in Jammu and Kashmir.

The source cited in the news claims that just two offers were placed in the first auctions, which led to the decision.

The government had said in a statement earlier this month that “a total of seven critical mineral blocks are being put up for auction as composite licenses in this third Tranche.”

As per the official release, bidders have until May 14 to submit their offers.

Seven significant mining blocks are currently up for bid as a combined license in the third tranche, according to the Ministry of Mines.

In accordance with Mineral (sale) Rules 2015, Subrule 10 and Subrule 11(b) of Rule 9, these seven mineral blocks are up for sale during a second try at the auction. Both the Ministry of Mines website and the MSTC e-auction portal have the notice inviting tender (NIT) posted. The announcement, which was made public earlier this month, said that the blocks that are notified under this tranche are those that had less than three bids in the first tranche.

These blocks, which are dispersed over Bihar, Jharkhand, Tamil Nadu, Uttar Pradesh, and the Union Territory of Jammu and Kashmir, include minerals such as glauconite, graphite, nickel, PGE, potash, lithium, and titanium.

In Jammu and Kashmir, lithium deposits were found by the Geological Survey of India (GSI) last year. They discovered 5.9 million metric tons of lithium deposits that may be inferred in the Salal-Haimana region of the union territory’s Reasi district.

Because lithium is essential to the production of batteries for electric vehicles (EVs), the metal has gained importance in recent years. This is especially important since the government is pushing EVs.

Numerous technologies, including solar panels, wind turbines, and electric cars, rely on lithium-ion batteries. A World Bank research project projects that by 2050, there will be an over 500% rise in demand for necessary elements like lithium.