While India is in talks with other countries rich in critical minerals, it is on the verge of finalising an agreement to acquire five lithium blocks for exploration and development in Argentina, according to a senior official.
The agreement will be signed by Khanij Bidesh India Ltd. (KABIL), a joint venture dedicated to identifying, acquiring, developing, processing, and commercialising strategic minerals in foreign countries for supply in India, and Catamarca Minera Y Energética Sociedad Del Estado (CAMYEN), an Argentine state-owned mining and energy company.
According to Business Standard’s report, the Centre is also going to invest around Rs 200 crore over the next five years in the exploration and growth of these mines. “The talks are in the final stages, and a proposal has already been submitted to the Cabinet Committee on Economic Affairs for approval,” a government official aware of the development was quoted as saying.
This is India’s second attempt, following Australia, to establish a foreign partnership to source critical minerals. In 2022, India signed an agreement with Australia’s Critical Minerals Facilitation Office (CMFO) to explore five blocks, two of which are dedicated to lithium and three to cobalt.
India is also planning to establish an offshore office for KABIL in Catamarca to improve coordination with provincial regulatory authorities. “Engaging in the exploration and extraction of critical minerals in Argentina will require considerable time and ongoing oversight. Establishing the offshore office of KABIL is a strategic measure to protect and uphold our interests in this endeavour,” another senior official said.
According to the United States Geological Survey’s (USGS) Lithium Statistics and Information 2023 report, Argentina has 21% of the world’s 98 million tonnes of lithium reserves, trailing Bolivia. These reserves are primarily concentrated in salt flats in the Catamarca, Salta, and Jujuy provinces, which form part of the Lithium Triangle.
India is in talks with Argentina because its salt-lake lithium extraction method is less expensive than hard-rock mining. This makes it economically appealing and significantly contributes to production.
India’s efforts in Argentina to secure lithium blocks will accelerate the country’s quest for self-sufficiency in meeting clean energy demands. On 29th November, India launched its first critical minerals auction drive to secure the supply chain. Two lithium blocks in Jammu and Kashmir and Chhattisgarh have been put up for auction. According to government estimates, the Reasi district has 5.9 million tonnes (mt) of lithium reserves. The mineral quantity for the Chhattisgarh blocks is not specified in the auction documents.
Currently, the country meets its lithium demand entirely through imports. According to Ministry of Commerce and Industry data, India’s lithium imports in FY23 totaled roughly $3 billion (approximately Rs 24,900 crore), a 58% increase from FY22. The data also shows that over 95% of India’s lithium imports come from Hong Kong and China. KABIL is actively engaged in discussions with several countries rich in critical minerals, including Bolivia and Chile, in addition to Argentina and Australia.
The exploration and development agreement for five lithium blocks will help India achieve its goal of becoming a manufacturing hub for electric vehicles by 2070.
Lithium is widely used in a variety of applications, most notably in the production of lithium-ion batteries. These batteries power a wide range of devices, including smartphones, laptop computers, electric vehicles (EVs), and energy storage systems for renewable energy sources such as solar and wind power. In addition, lithium is also used in medical treatments, ceramics, and as a component in aerospace technology.
