The global demand for critical minerals, especially lithium, is escalating due to the clean energy transition. India has discovered a significant 14 million tonne Nagaur lithium reserve in the Degana area of Rajasthan’s Nagaur district. This discovery, verified by the Geological Survey of India (GSI), is crucial for India’s economic independence, energy security, and geopolitical standing.
India has historically been a major importer of lithium, essential for electric vehicles (EVs), mobile technology, and renewable energy storage. This dependence often left India vulnerable to China’s near-monopoly in lithium processing and supply chains. The Nagaur lithium reserve, projected to meet approximately 80% of India’s lithium demand, offers a path to self-reliance.
This article explores the discovery’s geological makeup, economic and geopolitical ramifications, extraction and refining challenges, and the imperative for a sustainable approach.
India’s Critical Minerals: The Game-Changing Nagaur Lithium Discovery
The confirmation of the 14 million tonne Nagaur lithium reserve in Rajasthan has generated significant optimism. Located in the Rewat hills of Degana, this discovery surpasses previous finds, such as the 5.9 million tonnes of inferred lithium resources in Jammu and Kashmir (February 2023). The GSI confirmed these deposits while initially surveying for tungsten and associated minerals.
Earlier media reports in May 2023 announcing the find were clarified by the GSI as “baseless and misleading” due to ongoing drilling. Confirmed reports from September and December 2025, following extensive geological assessments, now validate these reserves.
The Union Ministry of Mines has initiated the auction process for lithium mining, with a bid submission deadline of December 1, 2025. This swift action highlights lithium’s strategic importance and India’s commitment to integrating it into its economy. Mining operations are expected to boost Rajasthan’s revenue and generate substantial employment. The Nagaur lithium reserve is positioned to be a cornerstone of India’s clean energy goals and critical mineral self-sufficiency for the EV industry and renewable energy infrastructure.
India’s Strategic Imperative: Bridging the Lithium Dependency Gap
India’s ambition in electric mobility and renewable energy has been hampered by its reliance on imported critical minerals. The nation imports 70-80% of its lithium needs, with a significant portion (over ₹3,500 crore annually) coming from China. This dependency exposes India to supply chain disruptions, volatile pricing, and geopolitical leverage.
Despite holding less than 7% of global lithium reserves, China dominates the lithium-ion battery supply chain, controlling an estimated 80% of global lithium chemical production, 78% of cathode production, and 70% of cell manufacturing for EVs. This makes China the “epicenter of lithium-ion battery production and refining.”
The Nagaur lithium reserve offers India an opportunity to shift this dynamic by:
- Boosting Energy Security: Reducing susceptibility to external shocks and ensuring a stable supply for vital industries.
- Driving Economic Prosperity: Catalyzing domestic manufacturing, curbing foreign exchange outflow, and fostering new industries and employment.
- Fortifying Geopolitical Stature: Gaining strategic influence and contributing to a diversified global supply chain for critical minerals.
This discovery complements India’s strategic initiatives like the National Critical Mineral Mission (NCMM), launched in 2025, which aims to boost domestic exploration, mining, processing, and recycling of critical minerals. Integrating the Nagaur lithium reserve will help India forge a resilient and self-sufficient supply chain for its green future.
Geological Insights: Unpacking the Nagaur Lithium Reserve
Understanding the geological characteristics of the Nagaur lithium reserve is vital for its efficient and sustainable extraction. The deposits are located in the Rewat hills of Degana, a region historically known for tungsten mining.
Key geological features include:
- Ancient Host Rock: Lithium is found within Neoproterozoic (approx. 827 ± 8.2 million years old) peraluminous granite, emplaced within Delhi meta-sediments.
- Hydrothermal Mineralization: The deposit is classified as a vein and greisen-type hydrothermal multi-metal deposit, where minerals crystallized from hot, mineral-rich fluids.
- Target Veins: Lithium and tungsten are concentrated in NW-SE trending quartz and pegmatite veins that have intruded the granite.
- Associated Multi-Metals: Regional surveys confirm the presence of bismuth, tin, cobalt, molybdenum, and rare metals like tantalum. Historical tungsten mining tailing dumps also indicate multi-metal potential.
This geological setting offers opportunities for economic viability due to co-occurring minerals but requires advanced extraction and processing technologies for efficient separation.
Economic Windfall: Catalyzing India’s Green Energy Transition
The economic implications of the Nagaur lithium reserve are profound, promising to accelerate India’s green energy transition and overall economic growth.
- Drastically Reduced Import Dependence and Enhanced Self-Sufficiency: The domestic source can fulfill up to 80% of India’s lithium demand, reducing vulnerability to global supply chain disruptions, geopolitical volatility, and fluctuating prices. This will conserve foreign exchange and improve India’s trade balance.
- Boosting EV Battery Competitiveness with Lower Costs: As a core raw material for cathode materials, lithium directly impacts battery performance and cost. An abundant local supply from Nagaur is expected to lower domestic battery cell costs, making EVs more affordable and accelerating market adoption. Stable raw material costs can also encourage investment in battery technology and quality.
- Fostering Domestic Manufacturing and Widespread Job Creation: The reserve provides a foundation for expanding India’s EV battery manufacturing ecosystem. Government initiatives like the Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery manufacturing will attract investment in gigafactories and processing facilities. The Indian EV battery market is projected to grow significantly, and localizing the value chain will create numerous employment opportunities.
- Challenging China’s Monopoly: A New Geopolitical Advantage: This discovery helps dismantle China’s near-monopoly in lithium processing and supply. By reducing dependence, India strengthens its energy security and gains a more prominent position in the global EV supply chain, offering new leverage in geopolitical relationships and contributing to its vision of becoming a global leader in green technology.
The Nagaur lithium reserve has the potential to transform India’s economic landscape, driving industrial growth, fostering innovation, and securing a sustainable future.
Navigating Extraction & Refining: India’s Path to Lithium Processing Prowess
Despite the Nagaur lithium reserve discovery, India faces challenges in developing advanced extraction and refining capabilities, as it currently relies heavily on imports, primarily from China, for processed lithium. Extracting lithium from complex geological formations interwoven with other minerals presents technological and cost hurdles.
India is implementing a multi-pronged strategy to overcome these challenges:
Accelerated Domestic Exploration and Auctioning:
- Beyond Nagaur, lithium blocks in Jammu and Kashmir and Chhattisgarh were auctioned in 2023.
- The Critical Minerals Mission (2024) coordinates national efforts.
- Amendments to mining laws have opened the sector to private miners and introduced new exploration licenses.
Establishment of State-of-the-Art Domestic Refining Infrastructure:
- Telangana: India’s first large-scale lithium refinery is planned by SCCL and Altmin Private Limited, aiming for 30,000 TPA of lithium carbonate by 2027.
- Nagpur, Maharashtra: Vardhaan Lithium (I) Pvt. Ltd. is developing an integrated refinery and battery production hub with an investment of Rs. 42,532 crores, targeting 60,000 tonnes/year refining capacity and 20 GWh/year battery output by mid-2024.
- Gujarat: Manikaran Lithium Private Limited plans a refinery with a 20,000 LCE capacity by mid-2024.
- Lohum: Is establishing India’s first battery-grade lithium refinery to process materials into high-purity lithium compounds, aiming to satisfy 15-20% of national demand by 2025.
Strategic International Partnerships and Acquisitions:
- Through Khanij Bidesh India Ltd. (KABIL), India is acquiring critical mineral assets overseas.
- Argentina: KABIL is pursuing lithium exploration in Argentina’s “Lithium Triangle.” Coal India Ltd. is also exploring blocks there.
- Australia: Comprehensive agreements for joint exploration and R&D in critical mineral supply chains are in place.
- Global Collaborations: Discussions are ongoing with Bolivia, Britain, Japan, South Korea, and Russia.
Pioneering Technological Advancements and Research:
India is investing in sustainable extraction methods. Institutions like IIT Bombay, CSIR, and ISRO are developing Direct Lithium Extraction (DLE), membrane separation, ion-exchange resins, and bio-leaching techniques. CSMCRI has developed a method to extract lithium from discarded batteries, promoting a circular economy.
These efforts demonstrate India’s commitment to building a self-sufficient and resilient lithium supply chain.
Sustainable Mining: Environmental and Social Stewardship in Rajasthan
The Nagaur lithium reserve discovery necessitates rigorous environmental and social responsibility, especially in the ecologically sensitive and water-stressed arid region of Rajasthan.
Potential Environmental Impacts:
- Water Scarcity and Contamination: Lithium extraction is water-intensive. Rajasthan’s water resources are already strained. Processing chemicals can contaminate waterways and groundwater.
- Land Degradation and Soil Contamination: Open-pit mining can cause extensive land degradation, habitat loss, and generate significant mine waste.
- Air Pollution: Mining operations release dust and particulate matter, impacting air quality. Heavy machinery use contributes to greenhouse gas emissions.
- Biodiversity Loss: Habitat disruption and pollution can severely impact local biodiversity, particularly in sensitive areas like the Aravalli range.
Crucial Social Impacts:
- Community Displacement and Livelihood Disruption: Land acquisition for mining may displace communities and disrupt traditional livelihoods.
- Health Impacts: Proximity to mining sites can lead to health risks from pollution. Workers are also susceptible to dust exposure.
- Socio-economic Concerns and Potential Social Unrest: Equitable distribution of benefits, fair wages, and safe working conditions are critical to prevent unrest.
Robust Regulatory Framework and Sustainable Practices:
Mining projects for critical minerals, including lithium, have been exempted from mandatory public hearings as of September 2025 to accelerate clearances, but must comply with Forest Act and EIA rules. The Supreme Court has issued directives for sustainable mining in sensitive areas, emphasizing regulation, monitoring, and restoration. The Rajasthan Mineral Policy 2024 focuses on sustainable utilization of state mineral wealth. Initiatives for recovering critical minerals from mining waste aim to reduce environmental impact and import dependency.
The success of the Nagaur lithium reserve development depends on stringent environmental impact assessments, transparent community engagement, and eco-friendly extraction and processing technologies.
Geopolitical Ripples: Reshaping the Global Lithium Landscape
The Nagaur lithium reserve discovery has profound geopolitical implications, poised to reconfigure global critical mineral supply chains and challenge China’s dominance.
- Drastically Reduced Indian Dependence on China: The reserve’s potential to meet 80% of India’s lithium demand will bolster India’s energy security and strategic autonomy, crucial for its EV market and renewable energy targets.
- Diversification of Global Supply Chains: India’s emergence as a significant lithium producer can contribute to a more diversified global supply chain, offering an alternative to China’s concentrated processing capabilities and reducing global dependence on a single geopolitical actor.
- Enhanced Leverage in India-China Relations: India’s strengthened domestic capabilities in critical minerals may diminish its vulnerability to China’s “weaponization” of mineral exports, potentially rebalancing economic and strategic interactions.
- Significant Economic Impact and Investment Magnet: The reserves position Rajasthan and India as a major global mining hub, attracting substantial investment in upstream mining, downstream processing, and battery manufacturing. This will generate jobs, boost regional development, and contribute to India’s GDP, making its green technology more competitive globally.
- A Challenge to China’s Monopoly: While China’s dominance in downstream processing remains substantial, India’s upstream self-sufficiency in lithium is a critical step towards eroding that control. India must invest in refining, processing, and battery manufacturing to capitalize on its reserves. The Nagaur discovery symbolizes India’s commitment to challenging mineral hegemonies and becoming a key player in the global critical minerals landscape.
The Nagaur lithium reserve is a geopolitical game-changer, empowering India’s green future and contributing to a more diversified and resilient global supply chain for essential 21st-century minerals.
Conclusion: India’s Green Future, Forged in Nagaur
The discovery of the 14 million tonne Nagaur lithium reserve in Rajasthan is a pivotal moment for India’s self-reliance and its ambition to lead in green energy. This find promises to significantly reduce India’s dependence on lithium imports, particularly from China, thereby fortifying national energy security and economic sovereignty. The geological richness of Degana, with its complex multi-metal deposits, provides a foundation for a burgeoning domestic critical mineral industry.
The economic implications are transformative: catalyzing a robust EV battery manufacturing sector, reducing production costs, generating substantial employment, and boosting regional revenues. Strategically, the discovery offers India leverage in geopolitical engagements, fosters diversification in global supply chains, and challenges entrenched monopolies in critical mineral processing.
Realizing this potential requires a balanced approach: navigating extraction and refining challenges with investment in cutting-edge technologies and robust domestic processing infrastructure. Equally crucial is an unwavering commitment to environmental and social stewardship, ensuring sustainable mining operations, minimizing ecological impact, and delivering equitable benefits to local communities.
As India proceeds with the auction and development of the Nagaur lithium reserve, it stands on the precipice of a transformative era. By leveraging this strategic resource, integrating innovative technology, and upholding responsible practices, India is poised to power its own green revolution and profoundly influence the global critical minerals landscape, forging a sustainable and self-reliant future.
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