After all, what will India do with 5.9 million tonnes of lithium?
China’s dominance will end in the next 10 years. India will leave China behind and become the factory of the world. Because we have found something in India that is as important in the 21st century as oil was in the past. This is white gold i.e. lithium. With the help of which you can super charge your growth. Because we have got 5.9 million tonnes of lithium in India. This is not a jackpot job for India, China is very upset due to this. But why?
Superpower of Lithium
You must have seen the movie Black Panther, then there is a frictional metal mansion named Vibranium in it, which supports all the technology of Wanda. The real life version of such a metal is Lithium. Of course, this metal does not have superpowers, but this metal can definitely give superpowers to your gadget. How? With its help. This is the Lithium-ion battery, which is used everywhere. From children’s toys to adult’s toys, when children grow up, do they stop playing with toys, not at all. Rather, his toys are also big. Elon Musk completely changed the market of electric vehicles. With Tesla cars. It’s not like there weren’t EVs before Tesla. But EVs used to be very small, low speed, low range toy cars. Elon Musk along with Tesla made EVs futuristic. Today the maximum Tesla vehicle is made in China. And from there it reaches all over the world. This is also a problem for BILLIONAIRE like Elon musk. Because tomorrow, if the relations between China and America get worse, then Tesla will be finished. That’s why he is demanding to have a lithium refinery in Texas next to his house. Why is Lithium important for EVs? Because the batteries of these EVs are made from Lithium only. Crude oil is called black gold, similarly lithium is called white gold. Today the country which has oil, that country is powerful. Similarly, in the future, the country which has Lithium, this white gold, is going to be a powerful country.
Importance of Lithium
We take something as simple as battery for granted. Today, batteries will be available at every nook and corner shop. You will not believe, but humans made the first battery, year 1800 by Alessandro Volta and then in 1850 the first rechargeable battery. But it was made from lead acid. Such type of battery is still used in your bikes or cars. To self start or to roll up or down the windows. The problem is that this battery is very big and does not hold much capacity. The smaller nickel cadmium battery was made in 1890. And then for a long time, there was no development in this technology. The countries that mastered this technology. They printed a lot of money in the first revolution of electronics, but in 1973, the Arabic word gave a big challenge even to a superpower like America. That we too can become assertive. For our oil, we can charge you whatever price we want. Two important events took place here. Petrodollar agreement took place, where all oil trade started in dollars. And Saudi Arabia became a major US partner. America had temporarily slowed down the problem of oil, but there was a need for a long term solution, so that it could reduce its dependence on oil.
During the 17s and 18s Dr. Weeting Hume, who worked for an oil company called Exxon, started looking for better ways to store energy. And came out after finding a technology to store 10 times more energy than lead batteries in the same size, going ahead, he also got a novel prize for this discovery in chemistry. This is called Lithium Ion Battery, Lithium is one of the largest elements in the world, and it has the capacity to pack big power in a small packet. You may not have heard its name, but such batteries are used every day. This battery is used in your mobile phones, laptops, electric cars. The first company to use such batteries was a Japanese company, Sony.
54% of the world’s lithium is found in these three countries Argentina, Chile and Bolivia. Together these 3 countries are called Lithium Triangle. But in the first point, we know that Lithium is white gold and in the 2nd point, we understand that whoever has white gold will rule the whole world. But why does Argentina’s economy always struggle? Why is there more inflation than in Pakistan? Because it has natural resources, but the capacity to extract it is very less. So they depend on other countries for their technology. The countries of the Lithium Triangle can only sell Lithium’s raw products. But the battery that will fit your mobile will still not be made in Argentina or Chile. It must have been made in one country, in China.
China’s Empire
Love them and hate them, but you can’t ignore them. We are talking about China. Today, the market for lithium-ion batteries has grown to $70 billion. Which China rules this entire market. Today China dominates the lithium world, 80% of lithium batteries are made in China. America comes on the second number, which makes only 7% of the battery. And the remaining 13% has been distributed by all other countries. Monopoly is a missed word in this dominance of China. the world is going electric, in the next 20 years by 2040, half of the world’s vehicles will be electric vehicles. And China is doing with lithium ion batteries what they did with solar panels. Rachel Loll invented solar panels in America, but today 3 out of every 4 solar panels are made in China. His funda is simple, don’t do homework, be a master in copying homework. China has caught the nerves of the world, they know that climate change is happening, and they are using this climate change for their economic benefit. Clean energy has already become the fastest growing industry in the world, and China is beating everyone in clean energy. photo volta single cells are made in China, the world’s cheapest wild power is made in China, and China has also become an expert in making lithium ion batteries. Countries like America, invented this technology, commercialized it from Japan, the countries in which this metal is found naturally, they did not earn profit on the basis of their natural resources, and countries like China took timely advantage of this growing industry took.one thing is missing from here, the world’s most popular country, a country which is the world’s 2nd largest market for mobiles. Which is the biggest consumer of Lithium Ion batteries, but India is far away from this industry.
India’s Masterplan
At the beginning of the blog, I told you that India has got 5.9 million metric tons of Lithium. Only 4.5 million metric tons of lithium in China, yet they have left behind even countries with 5 times more than themselves in making batteries. It is not just about having natural resources, it is about having the technology to extract them, and also being able to use them. India’s masterplan is simple, learn to copy better than China who copy homework. If you have read this blog carefully, then India’s masterplan is clearly in front of your eyes. America has Tesla, we have Tata and Mahindra making world class EVs in India. EVs that fit your budget are delivered to your doorstep. As well as building charging networks across India, Nitin Gadkari says that by 2030, 1/3 of the vehicles running in India should be electric. In different states, you will get subsidy on buying electric vehicles. this is the first step in the masterplan, generate interest among private players. The second step is, reduce dependence in foreign countries. today Tata and Mahindra vehicles are made in India, but still the battery comes from China. That is, Made in India, if you look inside the car, Made in China is written in small letters. This is a fact. This has to change, otherwise we will not be able to become completely self-reliant. For this we have got a boon in the form of Lithium Reserves.
And the third step is to extract lithium through public private partnership, and develop the expertise to manufacture lithium-ion batteries in India. There is a similarity between China and India that labor is cheap here. But there is a big difference, China’s labor is skilled labor, and our labor is unskilled. That’s why today China has become a manufacturing hub. And India cannot compete with China. Every year 1500 crore NRLM from our budget goes to the National Rural Livelihoods Mission. Under this through 20 ministries, 73 different skills are taught to the people. This is one step to make our labor skilled labor. 1500 crores is a very small amount for a big country like India, this amount needs to be increased atleast 5 times. Even then there will be some impact.
And the 4th step is to compete with China. Silicon Valley is worried about China after Covid. And looking for alternatives, the CEO of California’s One Charge company says that they also want to leave China and make lithium-ion batteries in America. But today this is not possible at all. Because America is labor expensive, they find it cheaper to import labor from China. Why only China, can’t we make a simple thing like battery in India? This is the question we all need to ask ourselves. Because if we hit four on this occasion, then we can become a big obstacle to stop China’s world domination. And if there is a conflict with China. The battery of our country will not run out. Native alternatives will be with us and this is important for us.
Why we need to Act Fast?
Whenever some good news comes, we should take it with the pinch of salt. That is, there should be happiness, but if you forget to take action from the celebration, it can be difficult. Why am I saying this, because the same news had come in 1992 also, director of minerals investigation, M.R. Kalsotra had himself told that there is lithium mining potential in Jammu and Kashmir Risum. A 67 page report was also prepared in 1999, but no action has been taken since then. And this opportunity was given to China, China has progressed 5 or 6 times more than us in the last 20 years. We missed the first face of electric revolution. Now the second phase is just starting, more capacity batteries will be installed for new generations. And in this India can become a supplier. And any new technology is born with a new problem for the environment. Mining is destructive to the environment, as well as we do not have a reliable solution for how to dispose off lithium-ion batteries. It is not a magic lamp that lasts for a lifetime. These batteries have to be disposed off after a while. It is estimated that by 2030, there will be 2 million tons of lithium ion batteries in use worldwide. Lithium is a highly reactive metal, which forms lithium hydroxide when it comes in contact with water. can catch fire very quickly.
Often we old electronics which have batteries. Throws them in the garbage. This waste goes into the sea through a drain or landfill. And your discarded electronics start a fire. Not to mention, all the metals in it are wasted. Even in developed countries like the US, less than 5% of lithium ion batteries are recycled. Lithium ion, like mining, also has potential to recycle. Where China is still behind, but not for long. This is my request to every ambitious Indians, not only for the environment but also for the environment. Just for profit, but consider the business of recycling lithium ion batteries. Because without this.
India’s masterplan is incomplete. It is necessary to do all these steps side by side. And it is a sincere request to every consumer that, do not throw all the electronics you have in the garbage, give them to an e-waste recycler. But anyway, these e-waste recyclers in your city will be just a Google search away. They made contacts, Diwali, Ganpati, Holi, in such festivals we clean the whole house and many old electronic items come out. Do e-waste collection drive in your society and together become a force for the solution. Because a good news becomes good news only when timely action is taken on it.