Jammu and Kashmir lithium blocks to be auctioned again in third tranche

Jammu and Kashmir will auction its lithium reserves again as part of the third tranche, as per a report. The auction will take place as the government received only two bids in the first round, as per a Reuters report that quoted a source. The last day of submission of bids is May 14.

According to the Ministry of Mines, seven critical mineral blocks have been put up for auction as a composite licence in the third tranche. “These 7 mineral blocks are auctioned under second attempt of auction as per sub-rule 10 and sub-rule 11(b) of rule 9 of Mineral (Auction) Rules 2015. The notice inviting tender (NIT) has been published on MSTC e-auction portal and on the Ministry of Mines website. The blocks which are notified under this tranche are those blocks which have received less than three bids in first tranche,” said the statement, released earlier this month.

The seven blocks pertain to critical minerals such as Glauconite, Graphite, Nickel, PGE, Potash, Lithium, and Titanium in the states of Bihar, Jharkhand, Tamil Nadu, Uttar Pradesh and Union Territory of Jammu and Kashmir.

The Geological Survey of India (GSI) found lithium reserves in J&K for the first time last year. It found lithium inferred resources (G3) of 5.9 million tonnes in Salal-Haimana area of Reasi district in the union territory.

In current times, lithium is a crucial element as it is one of the key components required for manufacturing of EV batteries. It is all the more crucial considering the government’s push for EVs.

Lithium-ion batteries are used in wind turbines, solar panels, and electric vehicles. As per a World Bank study the demand for critical metals such as lithium is expected to rise by nearly 500 per cent by 2050.