India Is Well Positioned To Be The Third Or Fourth Largest EV Market After Recent Lithium Discovery: Ankit Kedia

The Geological Survey of India (GSI) announced the discovery of lithium reserves in Rajasthan’s Dagena yesterday. The discovery came nearly three months after the GSI found lithium reserves in Jammu and Kashmir (J&K)

Though the body has not disclosed the amount, multiple media reports claimed, citing the Rajasthan government’s data that the reserves are bigger than the previous one. 

Lithium is considered the lightest metal in the world and is important in manufacturing electric vehicle batteries. 

Since 2015, India has been pushing itself hard for EV adoption. EV has to play a crucial role in the Prime Minister’s net zero carbon emission vision. In an attempt to accelerate the EV drive the government launched FAME I and FAME II schemes. 

With this latest discovery, a pertinent question arises, whether these newly found lithium reserves will fuel the country’s EV adoption. 

Answering the question, Ankit Kedia, the founder and lead investor of Capital A, said, “As India discovers significant lithium reserves in Rajasthan, in addition to the previously discovered reserves in Jammu and Kashmir, the country is well positioned to become the 3rd largest market for EVs in the next 4 years. Batteries, being the single largest cost and supplies dominated by China, have been a major obstacle for India's EV industry. However, with the 'Make in India' initiative and the discovery of lithium reserves, India is now able to reduce its dependence on foreign countries and control the fluctuating price of lithium. This development not only enables India to meet its domestic requirements but also allows it to supply lithium to other countries, creating a promising future for the country's EV industry.”

“Lithium-ion batteries are by far the most efficient, safer, and lightweight battery options for electric vehicles. This is where the discovery of Lithium reserves in different parts of India augurs very well for the Indian EV ecosystem. It is true that the mere discovery of the Lithium reserves isn’t automatically going to change everything as we will need to build processing infrastructure and expertise,” he added.