Reasi lithium deposit

Also called: Salal-Haimana lithium · Topic: Mineral Resources of India: Distribution and Conservation · NCERT: Beyond NCERT

Meaning

The Reasi lithium deposit is a lithium find at Salal-Haimana in Reasi district, Jammu and Kashmir (UT). The Geological Survey of India (GSI) reported it in February 2023 as 5.9 million tonnes of inferred lithium resources at the G3 (prospecting) stage [5][6].

• Why it matters: India imports almost all its lithium, and lithium is needed for EV (electric vehicle) and grid-storage batteries.
• The catch: this is India's best-known domestic lead, but it is still an early-stage estimate. It is not yet a mineable reserve.

Explanation

What "inferred, G3 stage" means

• Inferred resource means the amount is a rough estimate based on limited data. Nobody has proved yet that the lithium is there in that amount or at that grade (the share of lithium in the ore).
• G3 stage is prospecting, an early survey stage. Size and grade are only roughly known.
• The four stages, from earliest to most detailed:
• G4: reconnaissance (first look)
• G3: prospecting
• G2: general exploration

• G1: detailed exploration

• Mining needs G2 or G1 data. Reasi has to be upgraded before anyone can mine it.

• GSI did the G3 work in the field seasons 2020-21 and 2021-22 [5].

Geology: lithium in clay, not hard rock or brine

• At Reasi, the lithium sits in bauxite-clay horizons. These are layers of aluminium-rich clay inside Himalayan rocks.
• This is unlike the world's two main sources:
• Spodumene: a hard-rock lithium mineral. Australia mines this.

• Salt-lake brines: very salty underground water. South America produces lithium from these.

• Extracting lithium from clay is technically harder and less proven. This adds to the doubt about the deposit.

Why the auctions failed

• Early auctions of the Reasi block found no successful bidder. Check the current status before the exam.
• The chain of cause:
• The grade is uncertain and the data is only at the early G3 stage.
• So the risk for investors is high.

• So too few companies bid.

• What happens next: GSI is doing more exploration in J&K [6][4].

The legal and policy setting

• Lithium is one of India's 30 critical minerals. The Ministry of Mines released this list in June 2023 [3][2].
• The MMDR Amendment Act, 2023 changed two things:
• It took lithium off the "atomic minerals" list, so private firms can now explore for it.

• It lets the Central Government auction blocks of minerals in Part D ("Critical and Strategic Minerals") of the First Schedule.

• The National Critical Mineral Mission (NCMM), approved on 29 January 2025, will fund more exploration so that deposits like Reasi can move from G3 to G2/G1 [1].

Where it occurs

• Reasi deposit: the Salal-Haimana area in Reasi district, J&K. It lies in the Chenab valley in the outer Himalayan foothills.
• Other lithium leads in India:
• Katghora in Korba district, Chhattisgarh (lithium and rare earths)

• Mandya in Karnataka (lithium in pegmatite, a coarse-grained igneous rock)

• Main sources in the rest of the world:

• Australia: hard-rock spodumene

• The "Lithium triangle": the high Andean salt flats (salars) shared by Argentina, Bolivia and Chile. It produces lithium from brine.

• India's overseas lithium: KABIL holds five lithium brine blocks in Catamarca province, Argentina, through a deal with CAMYEN SE [7].

Don't confuse with

• Inferred resource (G3) vs proven reserve (G2/G1): Reasi's 5.9 million tonnes is an inferred estimate. It is not a confirmed, mineable reserve.
• Bauxite-clay lithium (Reasi) vs spodumene (Australia) vs brine (Lithium triangle): these are three different host materials. Reasi's clay type is the least proven to extract.
• Reasi (J&K) vs Katghora (Korba, Chhattisgarh) vs Mandya (Karnataka): only Reasi has GSI's reported figure of 5.9 million tonnes. The other two are just leads.
• Reasi lithium vs KABIL's Argentina blocks: Reasi is a domestic find made by GSI. The Catamarca blocks are an overseas asset bought by KABIL [7].

Prelims Hooks

• Reasi lithium: 5.9 million tonnes, inferred (G3), Salal-Haimana, Reasi district, J&K, announced by GSI in February 2023 [5].
• Exploration stages from earliest to most detailed: G4 → G3 → G2 → G1. Mining needs G2 or G1 data.
• Match the host material to the place: Reasi: bauxite-clay. Australia: spodumene. Lithium triangle: brine.
• Trap: the Lithium triangle is Argentina, Bolivia and Chile. Australia is not part of it, even though it is a top producer.
• Lithium is on India's list of 30 critical minerals (Ministry of Mines, June 2023) [3][2]. The MMDR Amendment Act, 2023 took it off the atomic minerals list.
• Early auctions of the Reasi block drew no successful bidder, because the grade was uncertain and the data was only at G3.

Mains Points

• Why Reasi matters (GS-III): India imports almost all its lithium, and refining is concentrated in China. A domestic deposit could stop the energy transition from simply swapping oil-import dependence for mineral-import dependence.
• Limits shown by Reasi:
• Early-stage (G3) data and uncertain grade put off bidders.
• Getting lithium out of clay is an unproven method.

• Mining in the fragile Himalayas raises environmental and social concerns.

• Way forward:

• Upgrade the deposit faster from G3 to G2/G1 under NCMM, which plans 1,200 GSI exploration projects by 2030-31 [1].
• Build processing parks.
• Diversify supply at the same time through KABIL's assets abroad and the MSP (Minerals Security Partnership) [7][8].

Related concepts

• Critical minerals
• National Critical Mineral Mission
• Khanij Bidesh India Limited
• Mineral Security Partnership

Read more

• Critical minerals and mineral security