India is strategically positioning itself to secure access to lithium, a critical mineral for its clean energy transition, by forging deals in Argentina's "Lithium Triangle". This move aims to diversify India's mineral supply chains and reduce reliance on imports, particularly from China.
Strategic Agreements and Collaborations
In recent months, India and Argentina have solidified their partnership through several key agreements. A Memorandum of Understanding (MoU) was signed to enhance cooperation in lithium exploration and mining investment. This partnership is expected to bolster resource security and create new opportunities for Indian companies in the Latin American mining landscape.
Khanij Bidesh India Ltd. (KABIL), a public sector undertaking (PSU), is at the forefront of this initiative. KABIL has secured a $24 million agreement for lithium exploration in Argentina, marking the first time an Indian government company has ventured into lithium exploration and mining. Under this agreement, KABIL will explore and develop five lithium brine blocks spanning 15,703 hectares in Argentina's Catamarca province. This project includes establishing a KABIL branch office in Catamarca. According to P. Kumaran, Secretary (East) at India's Ministry of External Affairs, KABIL and Coal India Limited have together secured four concessions in Argentina and are collaborating with CAMYEN, a provincial PSU, to develop these sites, extract lithium, refine it, and transport it to India.
The Significance of Argentina's Lithium Triangle
Argentina, along with Bolivia and Chile, forms the "Lithium Triangle," which holds a significant portion of the world's lithium resources. Argentina holds over half of the world's lithium resources and ranks among the top countries in terms of lithium reserves and production. The provinces of Catamarca, Salta, and Jujuy are at the heart of this triangle, holding nearly two-thirds of the global lithium reserves.
India's Growing Lithium Needs
Lithium is a crucial component in the production of batteries for electric vehicles (EVs) and renewable energy storage systems. As India aims to transition a significant portion of its vehicles to electric by 2030, securing a stable supply of lithium is of utmost importance. India's lithium dependency has surged in recent years, with imports rising from 67% in FY15 to 97% in FY24. A significant portion of these imports currently come from China, prompting India to diversify its sources.
Beyond Lithium: Broader Cooperation
The partnership between India and Argentina extends beyond lithium, with both countries keen on strengthening cooperation in geological exploration and promoting foreign investment. India has expressed interest in investing in Argentina's copper, gold, gas, and oil sectors. Both countries have also agreed to collaborate through their respective geological services to expand knowledge of unexplored regions.
Looking Ahead
These strategic lithium deals in Argentina are crucial for India's energy security and its ambitions in the clean energy sector. By securing access to lithium resources in the "Lithium Triangle," India is taking a significant step towards achieving its goals for electric mobility and renewable energy. The collaboration also strengthens the bilateral ties between India and Argentina, paving the way for further cooperation in various sectors.
