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Lithium auction in Reasi expected after final survey report
7/10/2025 10:56:31 PM
Sanjay Pandita
Early Times Report

Jammu, July 10: A comprehensive geological studies are currently in progress to further explore the lithium reserves discovered in the Salal-Haimna area of Reasi district.
These studies, aimed at upgrading the exploration status from the current G3 (inferred) level to at least G2 (general exploration) level, are expected to be completed by December 31, 2025, paving the way for a more informed auction of the strategically significant mineral block.
This was informed by Principal Secretary, Mining, Anil Kumar Singh, while speaking in this meeting to review the functioning of the Department of Geology and Mining.
Chief Secretary, Atal Dulloo, held a comprehensive review of the operations and future strategies of the Department of Geology and Mining in a meeting here today.
“As far as Lithium reserves in Reasi are concerned, it was divulged that the Geological investigations by GSI indicate a resource of 5.9 million tons of Lithium stretched over 3 sq km. Additionally, detailed geological studies are underway with an expected completion date of December 31, 2025”, Singh informed the meeting. The lithium reserves, estimated at 5.9 million tonnes, were first identified by the Geological Survey of India (GSI) during a G3-stage exploration project conducted between 2020 and 2022. This discovery, announced in February 2023, marked India’s first significant lithium find, positioning the Reasi deposit as potentially the seventh-largest lithium reserve globally. The lithium, found in clay deposits alongside bauxite and titanium, is a critical component for electric vehicle (EV) batteries, solar panels, and other renewable energy technologies, making it a vital asset for India’s push toward energy independence and net-zero ambitions by 2070.
Following two unsuccessful auction attempts in 2023 and 2024, which failed due to insufficient bidder interest, the Ministry of Mines has directed the GSI to conduct advanced exploration to provide greater clarity on the reserve’s quantity, quality, and economic viability. The previous auctions, held at the G3 level, were hampered by limited geological data, which deterred investors due to the high risks associated with the preliminary exploration stage. Industry experts noted that the clay-deposit form of the lithium, unlike the more commercially viable hard rock or brine deposits, poses extraction challenges, further contributing to investor reluctance.
“The ongoing studies aim to reach at least the G2 level, which will provide more reliable data on the lithium’s grade and distribution,” said a senior GSI official. “This will reduce uncertainties for potential investors and ensure the auction process aligns with international mineral reporting standards.” The GSI is employing advanced geochemical and geophysical surveys, along with drilling and sampling, to refine the resource estimate and assess processing feasibility.
The completion of the
Comprehensive geological studies are currently in progress to further explore lithium reserves.
These studies, aimed at upgrading the exploration status from the current G3 (inferred) level to at least G2 (general exploration) level are expected to be completed by December 31, 2025.
As far as Lithium reserves in Reasi are concerned, it was divulged that the Geological investigations by GSI indicate a resource of 5.9 million tons of Lithium stretched over 3 sq km.
Additionally, detailed geological studies are underway with an expected completion date of December 31, 2025.
e studies by December 31, 2025, is expected to bolster confidence among domestic and international mining companies. The Ministry of Mines has emphasized that the upcoming auction will incorporate updated geological reports to meet the Committee for Mineral Reserves International Reporting Standards (CRIRSCO), addressing previous criticisms of inadequate data.
The lithium deposit in Reasi’s Salal-Haimna area was discovered serendipitously during GSI’s exploration for bauxite and limestone between 2020 and 2021. Initial findings indicated an inferred resource of 5.9 million tonnes of lithium ore, with a lithium concentration exceeding 800 parts per million (ppm), which is considered high-quality enrichment (above 300 ppm). The deposit, located near the historic Bhimgarh Castle, is part of the “Reasi Sersandu-Kherikot-Rahotkot-Darabi” mineral block. The area also contains bauxite and titanium, adding to its strategic value.
However, experts have cautioned that the actual lithium carbonate content may be lower than initially projected, with estimates suggesting only about 0.02 million tonnes of lithium carbonate equivalent, significantly less than major global reserves like those in Chile or Australia. The clay-based nature of the deposit presents technical challenges, as commercial extraction from such formations is less established compared to hard rock or brine sources. Additionally, the region’s proximity to the Chenab River, local settlements, and forest land raises environmental and social concerns, including potential impacts on water resources and the need for community rehabilitation.
The Reasi lithium reserve is seen as a game-changer for India, which currently imports nearly all its lithium and lithium-ion batteries, costing over ₹26,700 crore between 2018 and 2021. With global demand for lithium surging due to the rise in electric vehicles and renewable energy technologies, securing domestic supply is a priority for India’s energy transition. The U.S. Department of Energy’s Lawrence Berkeley Lab has projected that the Reasi deposit could meet a significant portion of India’s lithium needs for EV and grid-scale battery production by 2047.
The J&K administration, in collaboration with the central government, is working to expedite the exploration process. “The discovery has put Reasi on the global map,” said J&K Mining Secretary Amit Sharma. “We are committed to ensuring that the extraction process is sustainable and benefits the local economy through job creation and infrastructure development.”
Despite the optimism, challenges remain. The region’s fragile Himalayan ecosystem has raised concerns among environmentalists, who warn that mining activities could provoke ecological disruptions, including water scarcity and slope destabilization. Local communities have also expressed apprehensions about displacement and environmental impacts, necessitating robust community engagement and monitoring systems.
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