Ola Electric Eyes Bid For Lithium Mining Rights In Centre's Auction

Ola Electric, the e-scooter manufacturer, is gearing up to participate in the bidding for mining rights for lithium blocks, currently being auctioned by the Centre, according to media report. The move comes as part of the NDA government's initiative to boost its electric vehicle (EV) battery manufacturing plans.

Last year, during the Monsoon session of Parliament, the Lok Sabha passed the Mines and Minerals (Development and Regulation) Amendment Bill, allowing private companies like Ola Electric to mine critical minerals such as lithium, which were previously restricted to state-owned entities.

The bill highlighted the necessity for reforms in the mineral sector to increase exploration and mining of critical minerals crucial for economic development and national security.

With electric vehicles constituting only two per cent of total car sales in India last fiscal year, the Centre aims to escalate this figure to 30 per cent by 2030. Against this backdrop, critical minerals like lithium have gained significance, aligning with India's commitment to energy transition and achieving net-zero emissions by 2070.

The ongoing auction, encompassing 20 blocks across eight states, is expected to generate approximately Rs 45,000 crore ($5.4 billion) for the government.

Media reports revealed that Ola Electric has expressed interest and raised several queries regarding land acquisition and the exploration of other minerals alongside lithium in the blocks. While Ola executives have attended auction meetings, the company is yet to make a final decision, contingent upon factors such as global lithium prices and the feasibility of mining operations.