Why are Indian firms on a Lithium hunt?

Lithium batteries are the new oil.

The world is looking at a complete transition from conventional engines to the paradigm of electric vehicles and batteries. The developing nation of India is aiming to achieve 30% of this target within the next decade and it is important to know if this is a plausible goal. Does India have the resources crucial to this transformation?

The recent developments

Automotive market research reports affirm that, with great support from the governing body, companies are looking forward to an electric vehicle boom in the near future. As a preparatory measure for this, three state-owned companies, National Aluminium Company Limited, Hindustan Copper Limited and Mineral Exploration Corporation Limited have come together to set up a joint venture.

This joint venture is named Khanji Bidesh India Ltd. abbreviated as KABIL. The firms that are a part of this venture have been mandated to seek Li and Co assets overseas. This process is expected to get underway in the next financial year. The KABIL companies have been thus been given a deadline of fixing all suitable corporate structures and completing the necessary formalities by March 2019.

This model of operation is also open to private mining companies willing to join in. 

What necessitates an overseas acquisition?

Indian government companies are spearheading the Lithium hunt and there are specific reasons why they’re scanning through foreign lands

·       The expansion of the lithium battery market in India would be difficult because there isn’t a plenty of this novel mineral.

·       There needs to be a reduction in dependence on oil imports (although we may then become dependent on Lithium imports that can be sorted out in the initial phase itself)

·       It will help the Indian government stay in touch with foreign countries for further aid through bilateral diplomatic channels

Will the renewed interest in EVs sustain itself?

Market research reports say that recent battery technologies have allowed the mass-production of electric cars and that is why their market is slowly regaining traction. But they’re still not ranked the best when compared to their much cheaper alternatives.

Not only are liquid and gas fuel-run cars cheaper, but they’re also met with the necessary infrastructure. There are fuel stations from place to place. Charging stations need to be constructed as an all-new amenity for the introduction of electric vehicles on road.

However, there are also many benefits of Lithium battery-run vehicles

1)      Unlike the current day cars, where engines are powered by fuel and accessories by battery, in an EV, the batter will serve the requirements of the entire vehicle as one

2)      Lithium-ion batteries are highly capable and can supply a good amount of current with minimal charging.

The challenges include safeguarding the battery in the vehicle. Li is a highly reactive metal and burns spontaneously on exposure to oxygen in the air. This may pose a major threat to the lives of the passengers aboard.

There are top companies now introducing electric prototypes of their vehicles. How the batteries transform themselves in the coming years will be a noteworthy observation.