India Eyes Acquisition Of Five Lithium Blocks In Argentina Identified By Kabil
The Indian government is planning to enter into exploration and development agreements with the Argentina government for five lithium blocks that have been identified by Khanij Bidesh India (KABIL) in Catamarca province, according to media reports.
The Centre will be investing around Rs. 200 crore over the next five years for the purpose of exploring and developing these mines.
Government officials aware of the development have said that the talks regarding a foreign partnership for sourcing critical minerals are in the final stages. A proposal has been submitted to the Cabinet Committee of Economic Affairs for approval.
This marks India's second attempt at signing a foreign partnership for sourcing critical minerals after previously signing a memorandum of understanding with Australia's Critical Minerals Facilitation Office (CMFO) in 2022.
The 2022 agreement allowed India to explore five blocks, two for lithium and three for cobalt.
India's KABIL is a joint venture company that aims to acquire and commercialise strategic minerals from overseas for supply in India. Recently, KABIL entered into an agreement with Catamarca Minera Y Energética Sociedad Del Estado (CAMYEN), a state-owned mining and energy company in Catamarca. The details of the agreement are expected to be declared soon.
India is planning to establish an offshore office for KABIL in the city of Catamarca. This office will work closely with provincial regulatory authorities to ensure that operations run smoothly.
According to a senior official, engaging in the exploration and extraction of critical minerals in Argentina requires significant time and ongoing oversight. Establishing KABIL's offshore office is a strategic step to protect and uphold India's interests.
Argentina boasts 21 per cent of the world's 98 million tonne lithium reserves, which makes it the second-largest lithium reserve after Bolivia, according to the United States Geological Survey's (USGS) Lithium Statistics and Information 2023 report.
These reserves are present in salt flats located in Salta, Catamarca and Jujuy provinces, which together form part of the Lithium Triangle.
India's interest in Argentina is not only due to its vast lithium reserves but also because it is a cost-effective method to extract salt-lake lithium compared to hard-rock mining, making it commercially feasible.
India is striving towards self-reliance in clean energy and has recently shown interest in lithium blocks in Argentina to achieve this goal.
The country has already initiated its first auction to acquire critical minerals on 29 November 2023. Two lithium blocks in Jammu and Kashmir and Chhattisgarh are currently available for bidding.
According to government estimates, the Reasi district block in Jammu & Kashmir contains approximately 5.9 million tonnes of lithium reserves. However, the exact amount for the Chhattisgarh blocks has not been specified in the auction documents.
Currently, India is dependent on imports for meeting its lithium demand. In FY23, lithium imports accounted for roughly USD 3 billion (almost Rs 24,900 crore), a 58 per cent increase from FY22, according to Ministry of Commerce and Industry data.
