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India’s First Lithium Refinery to be Set up in Gujarat

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The 1st Lithium refinery of India is to be set up in Gujarat. It will  process Lithium ore to produce battery-grade material. More than Rs 1,000 crore will be invested by Manikaran Power Limited(MPL) to set up this refinery.

MPL will import Lithium ore from Australia and process it in Gujarat.

Target – India has set an ambitious goal of increasing the Electric Vehicle numbers to 30% by 2030.


MPL in 2019 had collaborated with Australian firm Neometals to tap the Mount Marion Lithium mine in Western Australia for Lithium ore.

About Proposed Project

i.This proposed project will help the state to secure the raw material supply to manufacture Lithium batteries, as these help to promote electric vehicles.

ii.It will also make Gujarat a hub for Lithium ion batteries, as a few Lithium ion battery manufacturing plants are being set up in Gujarat.


Currently a couple of places in Sanand and Dholera are being explored to set up this refinery.

Lithium ion battery manufacturing plants in Gujarat:

i.TDS Lithium-Ion Battery Gujarat Private Ltd


Toshiba Corporation, DENSO Corporation and Suzuki Motor Corporation are jointly setting up TDS Lithium-Ion Battery Gujarat Private Ltd which is India’s first Lithium-ion battery manufacturing plant in Gujarat.  It is a Rs.1135 crore plant.


To manufacture and supply batteries to Suzuki Motor Gujarat plant in Hansalpur, Gujarat.


In September 2017, foundation stone was laid for the plant. It is expected to become operational by January or February 2021.

ii.Other Lithium-ion battery plant

Tata Group to set up a Rs 4000 crore Lithium-ion battery plant, for this purpose has acquired land in Dholera Special Investment Region (DSIR), Gujarat.

Adani Group also intends to set up a Lithium battery manufacturing complex in the state.

Significance of Lithium

i.Lithium is a rare element not usually found in India.

ii.India imports 100% lithium ion batteries from China, among others.

iii.This is the reason behind the high price of electric vehicles as the cost of batteries is largely consumed by the manufacturing cost of EVs.

Recent Related News:

On October 20, 2020 Nitin Gadkari, Union Minister for Road Transport, Highways and MSMEs(Micro, Small & Medium Enterprises) virtually laid the foundation stone for India’s first Multi-modal Logistic Park(MMLP) at Jogighopa in Assam. Rs 693.97 crore park will provide direct air, road, rail and waterways connectivity to the people.

About  Manikaran Power Limited (MPL):

Incepted– 2008
Managing Director– Mr. Navjeet Singh Kalsi
Headquarters– New Delhi, India