1. “CRITICAL MINERALS”
While lithium is often grouped with rare-earth elements in the “critical minerals” category, it is chemically distinct. However, its importance to India’s green energy transition is just as vital.
As of early 2026, India has transitioned from discovery to the first phases of active mining.
1. Major Domestic Reserves
India’s lithium landscape is currently defined by two major “hubs”:
A. Reasi, Jammu & Kashmir (The “Giant” Discovery)
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- Quantity: Estimated at 5.9 million tonnes (inferred).
- Current Status (Feb 2026): The G2 (General Exploration) stage, which provides more detailed data on the depth and quality of the ore, was scheduled for completion in January 2026.
- The Reality Check: While the headline figure is massive, recent government updates suggest the commercially extractable amount may be lower than the initial 5.9 MT estimate. The government is currently evaluating the G2 report to decide on the next auction round.
B. Katghora, Chhattisgarh (India’s First Active Mine)
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- Quantity: Smaller than J&K, but more accessible.
- Current Status: This is officially India’s first lithium mine. In 2025, the mining rights were awarded to Maiki South Mining Pvt Ltd.
- Significance: Unlike J&K, which is still in the exploration phase, Katghora is moving toward operational status in 2026, making it the pioneer of domestic lithium production.
C. Smaller Deposits
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- Karnataka (Mandya): Approx. 1,600 tonnes (hard rock).
- Rajasthan (Degana): Ongoing exploration for lithium-rich brines (similar to South America).
2. Comparison: Domestic vs. International
While India’s J&K discovery put it on the global map, the nature of the lithium is different from the “Lithium Triangle” (Argentina, Chile, Bolivia).
| Feature | India (J&K/Chhattisgarh) | South America |
|---|---|---|
| Form | Hard rock / Clay-hosted | Brine (Saltwater) |
| Extraction Cost | Higher (Requires crushing & heating) | Lower (Uses solar evaporation) |
| Time to Market | 5–8 years (est.) | Established infrastructure |
3. The “KABIL” Strategy (Overseas Assets)
Since domestic mines take years to reach full capacity, India is buying mines abroad through KABIL (Khanij Bidesh India Ltd):
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- Argentina: In 2024–2025, KABIL secured exploration and mining rights for 5 lithium blocks in the Catamarca province.
- Australia: India is co-investing in lithium and cobalt projects to ensure a steady supply for the domestic battery industry.
4. Key Challenges for 2026
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- The “Thorium” Problem: Many Indian lithium deposits are co-located with radioactive elements, complicating the refining process.
- Environmental Stability: The J&K reserves are in a “young” and unstable Himalayan range. Mining here carries high risks of landslides and water contamination.
- Technology Gap: India still lacks large-scale indigenous technology for Lithium Carbonate and Lithium Hydroxide refining, currently relying on Chinese or Australian expertise.
| State | District | Status (as of Feb 2026) |
|---|---|---|
| Chhattisgarh | Korba (Katghora) | Leased out; First mine to begin operations. |
| Jammu & Kashmir | Reasi | G2 exploration complete; Auction pending final data. |
| Karnataka | Mandya | Small-scale exploration; Research stage. |
| Rajasthan | Nagaur | Preliminary (G3/G4) surveys ongoing. |
EXPLAINING THE “G1 TO G4” CLASSIFICATION
In mineral exploration, we use the United Nations Framework Classification (UNFC) to describe how certain we are that a mineral is actually there and if it’s worth digging up.
Think of it like a funnel: you start with a massive area of land and narrow it down until you know exactly where the “prize” is.
The 4 Stages of Geological Knowledge (G-Axis)
| Stage | Name | What’s happening? | How sure are we? |
|---|---|---|---|
| G4 | Reconnaissance | Scientists look at satellite images, old maps, and fly planes over the area with sensors. They might pick up a few loose rocks on the surface. | There might be something here. |
| G3 | Prospecting | Geologists go to the site, dig small pits or trenches, and take more samples. They begin to identify the shape of the ore body. | There is definitely something here, but we don't know the exact size. |
| G2 | General Exploration | This is where J&K is currently. They start systematic drilling. They need to know the "Indicated Resource"—basically the size, shape, and grade (purity) of the mineral. | We have a good map of the deposit and an initial estimate of its value. |
| G1 | Detailed Exploration | Intensive, closely spaced drilling. This provides a 3D model of the deposit with a high degree of accuracy. This data is what a bank needs to fund a mine. | We know exactly where it is and how much it will cost to get out. |
The “3-Digit” Code (E, F, G)
You’ll often see a code like (332) or (111) in government reports. This is the “secret sauce” of mineral reporting:
1. E (Economic):Is it profitable? (1 = Yes, 3 = Not yet known).
2. F (Feasibility):Do we have the tech/plan to mine it? (1 = Ready, 3 = Still studying).
3. G (Geological):How well do we know the ground? (1 = Expert level, 4 = Guesswork).
Example: A find labeled (111) is the “Holy Grail”—it is Economic, Feasible, and Detailed. Most of India’s new lithium finds are currently at the (332) or (333) stage, meaning we know they are there (G2/G3), but we haven’t yet proven they are profitable (E3) or ready to mine (F3).
Why does this matter?
When you hear a headline saying “India finds 5.9 Million Tonnes of Lithium,” that is usually a G3 or G2 estimate. It doesn’t mean we can start digging tomorrow. It means we have passed the “search” phase and are now in the “evaluation” phase.
2. RARE-EARTH ELEMENTS (REES) AND INDIA’S CHALLENGES
Rare-earth elements (REEs) have evolved from obscure chemical curiosities into the “gold” of the 21st-century green economy. While their name suggests scarcity, the real challenge lies in their extraction and the geopolitical grip held over their supply.
Here is a breakdown of why they matter and how the global landscape—specifically the India-China dynamic—is shifting in 2026.
Definition and Context
Rare-earth elements are a group of 17 metallic elements: the 15 lanthanides (atomic numbers 57–71), plus scandium and yttrium.
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- The “Rare” Misnomer: They aren’t actually rare; Cerium is more abundant in the Earth’s crust than copper.However, they are rarely found in high-concentration “lodes” like gold or iron. Instead, they are spread thinly and mixed with other minerals, making them “rare” to find in a commercially viable, pure form.
- Unique Properties: Their value comes from their unique 4f electron shell structure. This allows them to act as incredibly strong permanent magnets, produce sharp light in lasers/screens (phosphors), and withstand high temperatures.
Why They Have Become Crucial
Rare earths are the “vitamins” of modern industry—you only need a small amount, but nothing works without them.
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- Green Energy: Neodymium and Dysprosium are essential for the high-performance magnets in Electric Vehicle (EV) motors and wind turbine generators.
- Electronics: They power the vibration motors in your smartphone, the speakers in your laptop, and the fiber-optic cables that carry the internet.
- Defense: Precision-guided missiles, sonar, and stealth technology rely on rare-earth components that cannot be easily substituted.
The Global Power Play: India vs. China
As of 2026, the world is racing to break a near-monopoly.
| Feature | China | India |
|---|---|---|
| Reserves | ~44 Million Tonnes (World's Largest) | ~6.9 Million Tonnes (3rd or 4th Largest) |
| Production | ~270,000 Tonnes (Dominates 70-90% of market) | ~2,900 Tonnes (<1% of global output) |
| Processing | Controls 90-99% of refining & magnet making. | Historically limited to raw sand processing. |
| Strategy | Moving to restrict exports of refining tech. | Shifting from "mining only" to "end-to-end" manufacturing. |
India’s Strategic Pivot (2025–2026)
India is currently making its most aggressive push yet to become a “China Plus One” alternative.
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- Rare Earth Corridors: Announced in the Union Budget 2026, India is establishing dedicated hubs in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to integrate mining with high-end manufacturing.
- REPM Manufacturing Scheme: A ₹7,280 crore program launched in late 2025 to create 6,000 tonnes of annual capacity for Rare Earth Permanent Magnets (REPMs).
- National Critical Mineral Mission (NCMM): A ₹16,300 crore mission focusing on the entire value chain, including recycling e-waste to recover these minerals.
Problems and Challenges
Despite having the raw materials, India faces significant hurdles:
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- The “Thorium” Complication: Most of India’s rare earths are found in monazite sands. These sands are radioactive because they contain Thorium, leading to strict (and often slow) regulatory oversight by atomic energy departments.
- Refining Gaps: Separating these elements is a chemical nightmare. India still lacks the industrial-scale technology to separate “heavy” rare earths like Dysprosium.
- Environmental Impact: Mining coastal sands can lead to erosion and affect local fishing livelihoods, leading to social and legal resistance.
Way Forward
To truly compete, India is moving toward:
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- Private Participation: Opening up deep-seated mineral exploration to private companies to break the state-owned monopoly of IREL.
- Global Alliances: Joining initiatives like the US-led Pax Silica or the Minerals Security Partnership (MSP) to secure technology transfers.
- Circular Economy: Scaling up the recovery of rare earths from old magnets and electronics, which is often cleaner than primary mining.
