• UGI USER
  • May 12, 2024
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KHANIJ BIDESH INDIA MAY ACQUIRE LITHIUM ASSET IN AUSTRALIA

Why in the news?

  • Khanij Bidesh India Ltd. (KABIL) aims to acquire a lithium block in Australia this year, according to Mines Secretary V. L. Kantha Rao.
source-US agency

About Possible deal:

  • KABIL, a joint venture of three PSUs, has been actively exploring mineral assets in Australia for the past year.
  • Mr. Rao emphasized the need for KABIL to expand its efforts in Australia and target one more asset during the current financial year.
  • Acquiring assets in Australia may pose higher costs compared to other countries like Argentina, requiring an increase in KABIL’s paid-up capital.
  • Currently, KABIL has a paid-up capital of ₹100 crore.
  • Lithium is crucial for the energy transition, serving as a primary component in lithium-ion batteries used in electric vehicles and battery energy storage systems.
About Lithium _:

  1. Primary Component of Lithium-ion Batteries: Lithium is a vital element used in the production of lithium-ion batteries, which power various electronic devices, electric vehicles (EVs), and battery energy storage systems (BESS).
  2. Energy Transition: Lithium plays a central role in the global transition towards renewable energy and sustainable transportation. Its use in lithium-ion batteries facilitates the adoption of clean energy technologies, reducing reliance on fossil fuels and mitigating environmental impact.
  3. Key to Electric Vehicles: Lithium-ion batteries are the primary energy source for electric vehicles, enabling them to operate efficiently and achieve extended ranges. The growth of the electric vehicle market is heavily dependent on the availability and affordability of lithium resources.
  4. Energy Storage Solutions: Lithium-ion batteries are also utilized in battery energy storage systems (BESS) for grid stabilization, renewable energy integration, and peak demand management. Lithium’s high energy density and rechargeability make it ideal for storing electricity generated from solar, wind, and other renewable sources.
  5. Consumer Electronics: Lithium-ion batteries power a wide range of consumer electronics, including smartphones, laptops, tablets, and wearable devices. Their lightweight, high energy density, and long cycle life make them preferred energy storage solutions for portable electronics.
  6. Medical and Industrial Applications: Lithium compounds are used in various medical treatments, such as bipolar disorder and depression. Additionally, lithium is employed in industrial applications, including lubricants, ceramics, glass, and aluminum production.
  7. Global Demand and Supply Chain: The increasing demand for lithium, driven by the rapid growth of electric vehicles and renewable energy technologies, has led to a global focus on lithium exploration, mining, and production. Countries with significant lithium reserves, such as Australia, Chile, and Argentina, play crucial roles in the global lithium supply chain.