Lithium in Odisha: Challenges preventing the state from becoming a mining powerhouse…

Odisha's Nayagarh district emerges as a potential lithium hub after GSI surveys hint at significant deposits. Despite Odisha’s rich mineral output, challenges like inadequate refining infrastructure and environmental concerns could hinder large-scale extraction.

Lithium in Odisha: Challenges preventing the state from becoming a mining powerhouse…

Lithium in Odisha (Image for representation purposes)

time

The Nayagarh district in Odisha emerged as a potential game-changer after preliminary surveys by the Geological Survey of India (GSI) in January hinted at significant lithium deposits. This “white gold” find could reduce India’s reliance on imports, which currently meet 100% of its lithium demand for electric vehicle (EV) batteries.

The discovery aligns with national goals to achieve 30% EV adoption by 2030 and positions Odisha, already India’s top mineral producer, as a critical player in the clean energy transition.

Multi-Minerals, Multi-Pronged Growth

Beyond lithium, Odisha is stated to be rich in gold-found in Deogarh, Keonjhar, and Mayurbhanj districts, coal, and chromite, contributing 50% of India’s mineral output.

The state’s existing infrastructure and expertise make it a natural hub for downstream industries like EV battery manufacturing. The GSI is now deploying AI and drones to accelerate exploration, improving mapping efficiency by 30-40% in pilot projects which may also include Mayurbhanj and Sundargarh.

Government Push Amid Challenges

A multi-crore Critical Mineral Mission (2025-26) aims to fast-track exploration, with plans to expand surveys to Kandhamal and Malkangiri. However, Odisha’s journey from mineral discovery to mining success faces significant challenges.

The state lacks the processing infrastructure needed to refine lithium for commercial use, notably missing dedicated refineries. In addition, mining in sensitive ecological zones raises environmental concerns. Local communities risk displacement, and natural habitats could suffer if mining is not carefully managed.

Odisha already supplies nearly 50% of India’s mineral output, but tapping into lithium’s full potential will require overcoming these hurdles. 

Environmentalists warn of water pollution and deforestation, citing past issues in regions like the Kopili River basin, where unregulated opencast coal mining has acidified the river, rendering sections of it lifeless and ecologically damaged.

Additionally, refining lithium domestically remains a technical hurdle, requiring foreign collaboration or significant R&D investment.

A Balancing Act for Progress

Odisha’s lithium reserves offer a chance to redefine its economy and India’s EV ambitions. Yet, success hinges on sustainable practices and infrastructural upgrades. As the state leverages its mineral wealth, striking a balance between growth and ecological responsibility will determine whether it becomes a global mining leader or repeats the pitfalls of past resource booms, say experts.

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