When it comes to greening the economy, one area where India has been doing exceptionally well is the Electric Vehicle (EV) sector. The most striking feature of India’s EV march is the consistency with which it is proceeding. The reason behind this consistency is the market-driven approach vis-à-vis the responsibility approach. One major limiting factor in this otherwise booming sector has been importing dependency. As per reports, India imports all its lithium from Australia and Argentina and 70 per cent of lithium-ion cells from China and Hong Kong. Now, with the discovery of 5.9 million tonnes ‘inferred’ resources of lithium in the Salal-Haimana area of Reasi district in Jammu & Kashmir, India’s EV sector is likely to receive a shot in the arm. It must also be added that the applicability of lithium and lithium-ion cells extends beyond the EV sector — it is used to operate other forms of green energy like wind and solar. Apart from meeting the domestic demand, the discovery also presents an opportunity to explore the promising international market. As of now, China accounts for more than three-quarters of the global lithium-ion battery manufacturing capacity and has managed to build a sound ecosystem for the same. In 2023, China is reported to have signed a USD 1 billion deal to develop Bolivia's vast lithium reserves, which are estimated at 21 million tonnes and are the largest in the world. China’s unequivocal dominance in lithium-ion cell manufacturing is not only a competitive factor for India but is also a cause of concern for the developed world. The unpredictability of China as a supplier of lithium-ion cells has made the developed world wary of possible insecurity in the energy sector for the foreseeable future. It may be noted that the world currently stands at the cusp of a paradigm shift in terms of the green energy transition. Sectors like electric vehicles and hydrogen energy will likely fuel economies in the coming time. According to the World Bank, the mining of crucial minerals must increase by 500 per cent to meet the global climate targets by 2050. It is then no surprise that countries would strive to avoid the kind of energy insecurity we have been witnessing on account of Russia’s aggression in Ukraine and the concentration of crude oil in limited pockets of the world. Countries like Canada are already moving away from China to avoid excessive reliance on the EV sector. The question is whether India can fill the gap. Apart from China and Hong Kong, Australia and certain South American countries are also major contenders in the fray. As far as India’s potential in the sector is concerned, the current discovery of lithium reserves is indeed huge, given that lithium is a lightweight metal. More importantly, India’s ‘Rare Earths Mission’ — targeting the exploitation of the country's critical mineral reserves — might be on its way to exploring more such reserves. India appears to be committed to making its presence felt in this direction. While the availability of the mineral may not be that big of an issue now, there are other larger concerns. The primary concern relates to environmental sustainability. Unlike in Australia where the lithium reserves are trapped in sustainable hard-rock mountains, the mountains in the Himalayan ranges are geologically active and more fragile. The wounds of the Joshimath crisis are still unhealed. In the age of exacerbating climate change, the negative fallouts could be obvious. Furthermore, the extraction of lithium reserves entails open-pit-mining followed by roasting of the ore with the use of fossil fuels. The process is estimated to consume large quantities of water and emit significant amounts of CO2 — all this in the eco-sensitive region of Jammu & Kashmir. The UT’s socio-political sensitivity also demands close consideration. It will be extremely vital to satisfy the local population of the region by engaging them in the process of extraction in remunerative terms. The lithium extraction sector in South American countries has resulted in great chaos. India needs to make a detailed case study of lithium-mining countries before charting out its plan to exploit the mineral from the newfound reserve. To sum up, the great advantage that has been knocked at India’s doorstep will make sense only if the environmental factors and interests of the indigenous population are balanced against market considerations. The margin of error is very slim on this front.