Case Study: Lithium-Based Company and Impact of India’s Lithium Mining
 Case Study: Lithium-Based Company and Impact of India’s Lithium Mining

 Case Study: Lithium-Based Company and Impact of India’s Lithium Mining

Lithium is known as white gold and is very necessary for making lithium-ion batteries used in various products, such as electric vehicles, mobile and laptops. It will become a convenient and effective material used for energy storage.

One of the important examples of a lithium-based company is Tesla. Tesla is US based electric vehicle company, which manufactures electric vehicles, which use lithium-ion battery cells. In 2017, Tesla presented its plan and made aware the world of its intention.

For many years Tesla has been proving that they are improving in their capacity of manufacturing lithium battery storage, innovations they have been implementing in the manufacturing of lithium batteries used in the electric company. Tesla is also focusing on improving the efficiency and performance of its batteries. The success of Tesla depends upon the innovation efficiency and sustainability that they have been implementing for many years. For this achievement, the company invested more in R&D to improve its performance, productivity, and innovations in batteries.

There is another example of a company is Panasonic in Japan which manufactures lithium-ion batteries. Panasonic is involved in processing lithium-ion batteries and supplying these batteries to various automakers, including Tesla. Supplies the batteries to the household also, for the purpose of energy storage.

For a few years, Panasonic manufactured batteries for extreme environments. It developed the new technology known as ‘cold resistant’ lithium. This Lithium-ion battery is specifically designed to work in extreme environments, such as low temperatures, minus degrees Celsius Such technology is very useful in extreme environments, where the battery are used. It may be useful in the defense sector for the purpose of putting energy storage in any environment.

Tesla and Panasonic achieved the height of success based on their innovation, efficiency, and sustainability. They have always been focused on innovation and technology which enables the user to use batteries in any environmental condition. An increase in the demand for electric vehicles pushes the production of lithium-based batteries. Panasonic and Tesla plays important role in making this happen.

Talking about the dependency of this lithium from India, significantly it will be low as  Tesla has been importing lithium from various countries like Argentina, China, and Australia, due to which will not influence the lithium importing from India. There will not significant impact of India’s lithium mining on Tesla. However, Tesla can take benefit from importing lithium from India due to the possibility of lithium at a low cost. India has A significant quantity of lithium reserves. India is the largest market for purchasing lithium also. Tesla can involve in processing and manufacturing Lithium based products to capture the largest market, like India.

In case of the positive impact of India’s lithium mining on Tesla’s business, it will change the structure of the supply chain of Tesla. Tesla may change the importing quantity from various countries like Argentina, and Australia. Instead of that, Tesla may import a significant quantity of lithium from India.

Whereas in the case of the negative side, there is a concern about the environmental influence of lithium mining. It can harm the environment significantly. Air pollution, soil pollution, and water pollution will cause problems to make a balanced environment. It is very essential to realize these factors for the companies which are involved in processing and manufacturing, lithium-based products. So in regard to this issue, companies must implement technology that is eco-friendly and which will not impact or harm, more to the environment. These companies may use the advancement in technology which can reduce the negative impact on the environment.

Moreover, Tesla will not be influenced significantly by lithium mining in India. But, The Indian market will be influenced by lithium mining in India. When India uses the appropriate technology for lithium processing and manufacturing, it is possible to change the picture of India. From the perspective of economy, India will be the leader, or make the country a major supplier the lithium-based products and materials across the globe. Some are the factors that may be influenced by Indian lithium mining and processing.

The following are the factors, which influence Indian lithium mining.

Industrial market: Industries or manufacturing companies, which are involved in manufacturing lithium-based products reduces their cost by reducing the import of lithium from other countries.

Balance of trade: India has been importing lithium. More than 20,000 crores of lithium are imported into India. This is a significant amount. Can be saved by producing lithium in our country? Kim winding in India made it. Make it possible to reduce the cost of importing lithium and making available lithium to the country. Industrial market.

Dependency on developed countries:  All developed countries may depend on India’s lithium mining as India may be the largest source of lithium-ion, It makes India the place, which is the better source of lithium, and so attracts many developed countries like the US, the UK, and all of Europe.

Opportunity to increase the national income: By making advancements in the technology, processing, and manufacturing of lithium-based products, India can increase the national income by selling lithium and lithium-based products to countries where it is not available.

Specifically, Indian lithium mining influences the profitability of the automobile companies of India, which are making or manufacturing electric vehicles.  All electric vehicle uses a lithium-ion-based battery, which increases the demand for lithium significantly in the future. When India will be an independent country of lithium, reduces the fiscal deficit and increases the national income. It also saves the spending or expenditure on importing lithium from other countries.

If we focus on the industries, which influence large by Indian lithium mining, we will come to know that number of companies will be influenced positively. Due to Lithium mining in India, the industrial market, make available the raw material needed for the manufacturing of lithium-based batteries and consequently to manufacture lithium-based products. so India will have the opportunity to generate more revenue by reducing the cost which had been spent on importing lithium from outside countries.

When India reduces its dependency on lithium in various other countries, it is possible to become more powerful and resourceful. India could manufacture as well as produce lithium for the fulfillment of the local demand as well as outside demand. In this way, India not only saves spending on importing lithium but also generates revenue by making available lithium and lithium-based products to the  Global market.

The impact of lithium mining may be positive or negative. That is depends upon. The various factors such as the cost of mining. Demand for the electric vehicles and various products, which uses the lithium based batter. One more important factor is sustainability and regulation of mining industry. Mining industry and their regulation may influence various factors of lithium industrial market  It the company.

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If lithium mining will be successful in India, it makes available the better source of lithium for the companies which are manufacturing the lithium based batteries. It influences positively and significantly on the automobile markets, which manufacture the electric vehicles. Such companies will have an opportunity to increase the market by making available the electric vehicle at affordable cost. Subsequently, it influenced in reducing the overall cost of the vehicle. India may reduce the supply chain risk by producing the lithium in our country. The supply chain management required to be executed when India imports the lithium from the outside countries.

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