With the world moving towards a greener future, lithium is emerging as an essential resource in the switch to sustainable energy. Lithium, sometimes referred to as “white gold”, is a crucial part of rechargeable batteries, which are used in cellphones, renewable energy storage systems, and electric vehicles (EVs). Many are referring to the recent surge in lithium demand as the “Green Gold Rush”, which has created serious environmental and social issues that need to be resolved to ensure a sustainable future.
Lithium-ion batteries are at the center of the green technology revolution. They are more efficient, have higher energy densities, and offer longer lifespans compared to traditional batteries. This makes them essential for the development of EVs and the storage of renewable energy, both of which are crucial for reducing greenhouse gas emissions and combating climate change.
The global demand for lithium is expected to increase dramatically in the coming years. According to the International Energy Agency (IEA), the demand for lithium could increase by over 40 times by 2040 if the world adheres to the Paris Agreement targets. The EV market alone is projected to drive a significant portion of this demand, with Bloomberg NEF estimating that EV sales will account for 58% of global passenger vehicle sales by 2040.
India, with its ambitious goals for EV adoption and renewable energy, is emerging as a significant player in the global lithium market. The Indian government has set a target of achieving 30% electric vehicle penetration by 2030. This required a substantial increase in lithium-ion battery production, making lithium a critical resource for the country’s energy strategy. Thus India’s demand for lithium is expected to skyrocket in the coming years.
India has limited lithium reserves, and most of its lithium needs are met through imports. However, there have been recent discoveries of lithium reserves in Karnataka, which could potentially be tapped to reduce dependence on imports.
What can help in the reduction of environmental impact caused by lithium?
Although lithium is essential to renewable energy technology, the method of extracting it presents several environmental problems. Innovations in lithium extraction technologies can help reduce the environmental impact of mining. For instance, Direct lithium extraction (DLE) techniques, which use less water and energy, are being developed and tested. These methods could potentially offer a more sustainable way to obtain lithium without the significant environmental footprint of traditional methods.
Recycling lithium from used batteries can also play a crucial role in meeting future demand. Currently, only a small percentage of lithium-ion batteries are recycled in India. Thus, increasing this rate through improved recycling technologies can help reduce the need for new mining operations and lower overall environmental impact.
Key Legislations for Mining in India
Mining in India is both a state (entry 23) and a union (entry 54) subject, regulated by comprehensive legal frameworks designed to manage the exploration, extraction, and processing of minerals. The key legislation governing mining activities is the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). This Act provides the foundational legal structure for the regulation of mines and development of minerals in India.
The MMDR Act empowers both the central and state governments to make rules for the conservation and systematic development of minerals, and to control mining operations. It also distinguishes between major minerals (such as coal, lignite, and iron ore) and minor minerals (like sand, clay, and gravel), with states having more control over the latter. Several amendments as recent as 2021 and further rules have been notified – the Mineral (Auction) Rules, 2015, the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 the Mineral Conservation and Development Rules, 2017. The Offshore Areas Mineral (Development and Regulation) Act, 2002, governs the development of mineral resources in offshore areas.
Environmental regulations also play a vital role in mining law. The Environmental Protection Act, 1986, mandates environmental clearances for mining projects. The Forest Conservation Act, 1980, requires permissions for mining activities in forest areas, ensuring ecological balance.
The National Mineral Policy of India 2019 aims at facilitating the efficient development of the minerals sector by ensuring sustainability in the mining sector. The new policy replaced the earlier policy that was issued in 2008, with a view to the changing needs of the minerals sector while attempting to strike a balance in terms of mineral development and the environment.
The Environment Impact Assessment (EIA) Notification of 2006, issued by the Ministry of Environment and Forests (MoEF) under the Environmental Protection Act (EPA), governs the process for granting environmental clearances. The potential environmental impacts of a mining project are evaluated through an EIA study. Based on this assessment, an environmental management plan is developed, and environmental clearance is granted with specific conditions designed to minimize the project’s impact on the environment.
Lastly, the Mines Act, 1952, deals with the health and safety of mine workers, setting standards for working conditions in mines. Collectively, these legal provisions ensure a balanced approach to mineral resource management, economic development, and environmental protection in India.
Legal Implications for Lithium Mining in India
Lithium mining in India is governed by a comprehensive legal framework that includes several key legislations. The principal legislation is the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), which provides the overarching guidelines for the exploration, allocation, and extraction of major minerals, including lithium. Complementing the MMDR Act are the Mineral Concession Rules, 1960, which detail the procedures for obtaining mining leases and ensuring regulatory compliance. Environmental protection is a critical component of the legal framework, governed by the Environmental Protection Act, 1986, which mandates environmental clearances for mining projects to ensure they meet environmental standards and mitigate adverse impacts.
Additionally, the Forest Conservation Act, 1980, requires clearances for mining activities in forest areas, ensuring the protection of forest land and biodiversity. Water pollution controls are enforced under the Water (Prevention and Control of Pollution) Act, 1974, addressing potential contamination from mining operations. Worker safety and health are regulated by the Mines Act, 1952, which sets standards for working conditions, safety equipment, and accident prevention measures in mines. The National Mineral Policy, 2019, further supports the sustainable development of mineral resources, emphasizing the reduction of environmental impact and transparency in mineral concession allocations. Together, these legislations form a robust legal framework aimed at balancing the development of lithium resources with environmental sustainability and worker safety.
In India, the 2019 National Mineral Policy has been an important factor influencing sustainability. The major focus is to minimize environmental degradation in lithium mining through efficient waste management and utilization of resources. The policy emphasizes on fair and competitive mining practices and transparent mechanisms for granting mining tenure which will lead to sustainable mining being undertaken. It also promotes community involvement and includes all stakeholders during the entire mineral development cycle to minimize/mitigate social impacts and mine rights. The policy is based on a generic, broad, inclusive and stable prospective vision which signifies a high level of commitment towards its overall intentions, globally. Further going through National Mineral Policy,2019 it can be understood that India is moving in a positive direction of managing sustainable growth and environmentally friendly lithium mining.
Lithium Mining and Justice with Nature
In conclusion, the world’s transition to sustainable energy has amplified the importance of lithium, crucial for rechargeable batteries in cell phones, renewable energy storage systems, and electric vehicles (EVs). This surge in environmentally friendly alternative demand dubbed the “Green Gold Rush,” poses environmental and social challenges. Lithium-ion batteries are central to reducing greenhouse gas emissions, aligning with global climate goals. India’s ambitious EV adoption and renewable energy targets further emphasize lithium’s critical role, with the country aiming for significant EV penetration by 2030.
