No white gold rush: Why interest in Kashmir’s lithium reserves is lukewarm

livemint.com:

Financial Times in April 2023 itself that he would “100 percent bid for the lithium blocks" a claim he would reiterate in March 2024. Hindalco Industries, Ola Electric, Vedanta Group and Shree Cement were some of the other interested parties. State-run Coal India Ltd, forever looking to diversify beyond coal, also showed interest.

In its annual report for 2022-23, the company said: “We are exploring the acquisition of lithium, cobalt, and nickel assets abroad and have amended our Memorandum of Association (MoA) to include non-ferrous and critical minerals. We are currently identifying suitable overseas assets for mergers and acquisitions." Buoyed by such interest, the government moved quickly. Critical minerals, including lithium, were off limits for private miners in the country back then.

In August 2023, the rules were amended to let private miners bid for these resources. By November, the stage was cleared for auction of the resource. The reserves put up for bidding in Kashmir were among 20 blocks comprising minerals worth an estimated ₹45,000 crore.

“For the first time ever, we have identified a critical and deep-seated mineral. We have not just identified but we have also put it up for auction today," said Prahlad Joshi, former minister of mines, on 29 November 2023. The lack of bidders at the auction, which ended in the second half of January, was a sobering reality check.

The reserves in Kashmir received only two bids, forcing the government to cancel the auction—less than three bidders makes the process invalid. Mint could not ascertain the identity of the two bidders—the government does not reveal the names in case of a failed bid. Lithium is a critical component in the global war against climate change and