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HomeEconomyAndhra's Rs 150 cr exploration MoU for lithium, gallium as Centre pushes...

Andhra’s Rs 150 cr exploration MoU for lithium, gallium as Centre pushes critical mineral self-reliance

Andhra Pradesh has signed an MoU for a Rs 150 crore exploration project to study lithium and gallium deposits in Kadapa Basin, part of the Centre’s drive to reduce critical mineral imports.

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Hyderabad: Extending the Centre’s National Critical Minerals Mission (NCMM) to secure India’s critical mineral supply chain, Andhra Pradesh has initiated large-scale exploration of lithium and gallium deposits in Vempalle, within the Kadapa Basin.

With lithium and gallium classified as critical minerals by the Centre, Andhra Pradesh created a special policy in 2025 for mining 30 critical minerals and 24 minor minerals. The Indian government launched the NCMM in April 2025 to establish a robust framework for self-reliance in the critical mineral sector. Under this mission, the Geological Survey of India (GSI) was tasked with conducting 1,200 exploration projects from 2025 to 2031, according to a communication from the Centre.

While lithium is considered essential for manufacturing lithium-ion batteries used in electric vehicles (EVs) and grid-scale energy storage, gallium is vital for producing photovoltaic (PV) cells for solar panels, semiconductor chips, and electronic components. The proposed policy aims to foster responsible mining, attract investments, and ensure sustainable practices, a statement issued by the Andhra government read.

The Centre has encouraged states to demarcate mineral regions and create mineral resource parks to drive domestic exploration and improve self reliance. It even eliminated customs duties on key critical minerals and allocated funds in the union budget in 2025 to boost domestic processing and reduce import dependence on nations like China. The exemptions have been extended to lithium-ion battery scrap, cobalt, lead, zinc, and additional minerals in the subsequent budget to support domestic manufacturing and clean energy.

To this end, a memorandum of understanding (MoU) has been signed between the CSIR-National Geophysical Research Institute (NGRI) and the state Department of Mines and Geology. The agreement was finalised earlier this week by Chief Minister Chandrababu Naidu.

Preliminary research conducted by NGRI in the Thummalapalle area and its surroundings had previously identified traces of lithium and gallium. Estimates suggest lithium levels reaching up to 1,000 parts per million (ppm) and gallium up to 250 ppm.

Tummalapalle, also in Kadapa, is known for the Tummalapalle uranium mine, which holds massive natural uranium reserves. A major mining and processing facility is operated by the Uranium Corporation of India Limited (UCIL).

The new agreement aims to facilitate further study of these deposits. The project will be undertaken with 100 percent funding from the National Mineral Exploration Trust (NMET), at an estimated cost of nearly Rs 150 crore.

The government has also entered into another MoU between the Department of Mines and IIT (ISM) Dhanbad-TexMin to focus on research, technology, and skill development within the state’s mining sector. Through this initiative, IIT (ISM) Dhanbad will establish a centre of excellence for the mining sector in Andhra Pradesh.

“Encouraging innovation and patent filing across the critical mineral lifecycle is equally important as India gains expertise in mining minerals. We have a mandate from the Centre and state governments to create training modules and invest in upskilling the workforce to support activities in mining, processing, and R&D,” Secretary, Mines, Mukesh Kumar Meena had earlier told ThePrint.

(Edited by Viny Mishra)


Also read: How Andhra’s latest mineral mapping could power India’s defence self-reliance, rare-earth ambitions


 

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