As electric vehicles (EVs), renewable energy storage, and battery-dependent technologies surge forward, lithium refining is emerging as the pivotal link in India’s clean-energy future. While India has long depended on imports for critical battery-grade lithium, upgrades in domestic capability and pipeline projects are signaling a transformative leap.

India’s Lithium Readiness: Reality & Ambition

• In February 2023, the Geological Survey of India announced a discovery of 5.9 million tonnes of lithium in Jammu & Kashmir—now ranked as the 7th largest known deposit worldwide. Yet, the clay-based nature of the resource presents extraction and purification challenges. Commercial-scale processing from these reserves is projected to take 4–7 years, emphasizing the need to fast-track upstream investments.

• Today, India imports virtually all of its battery-grade lithium, exposing the nation to global supply risks and limited bargaining power. This dependency highlights the urgency of building local refining infrastructure.

Global Trends Support India’s Move

• China currently dominates 60–80% of global lithium refining capacity, offering battery-grade lithium carbonate and hydroxide at scale. India is prioritizing partnerships across Australia, US, Russia, and South America to diversify sourcing.

• New opportunities are emerging in battery recycling. Scientists in Gujarat have developed a method to extract lithium at 97% purity from spent batteries within just a few hours—a leap toward more sustainable refining.

Vardhaan Lithium: Anchoring India’s Strategy

• Vardhaan Lithium (I) Pvt. Ltd. is constructing India’s first integrated lithium refinery and Li-ion battery facility in Butibori, Nagpur, Maharashtra. The ₹42,532 crore project spans 500 acres, with a planned refining capacity of 60,000 tpa and battery output of 20 GWh/year.

• The company has secured environmental clearance for its Zimbabwe mining venture, ensuring upstream supply. Processing is expected to begin imminently, positioning Vardhaan as one of India’s earliest operational refiners.

• Collaborations with leading U.S. and European technology providers support the use of globally accepted battery-grade refining methods and digital automation.

Building Local Capacity and Circular Economy

• Battery recycling presents a complementary path. India is scaling facilities that can recover up to 95% of lithium from end-of-life batteries, fostering sustainability and reducing import costs.

• Establishing domestic refining capacity now provides readiness to tap into India’s own lithium reserves when they become commercially viable. This forward-looking strategy aligns with both industrial scaling and resource Nation-building.

Final Outlook

India stands at the threshold of a sustainable lithium future—from importer to potential global supplier. While technical hurdles persist, including ore processing and resource commercialization, efforts led by Vardhaan Lithium and government-backed programs bring strong momentum to the ecosystem. As recycling scales and new sourcing partnerships blossom, India is building the infrastructure, expertise, and resilience required to claim a leadership role in the global lithium supply chain.