India Argentina sign MoU for Lithium mining & exploration in Argentina
Agreements and MoU
5 min read
India and Argentina have signed a memorandum of understanding (MoU) to deepen collaboration in the exploration and development of lithium mines in Argentina.
The MoU was signed between the Mineral Exploration and Consultancy Limited (MECL), and the Provincial Government of Catamarca, Argentina, in New Delhi on 19 February 2025.
The Mineral Exploration and Consultancy Limited is owned by the government of India and comes under the Union Ministry of Mines.
The MoU was signed during the meeting of G. Kishan Reddy, Union Minister for Coal and Mines, with the visiting Governor of Catamarca Province of Argentina, Alejandro Jali,l in New Delhi.
The MoU is expected to help India realise its objective of net-zero emissions by 2070 and establish itself as a manufacturing hub for electric vehicles.
Significance of Lithium
Lithium, also called as White Gold, is one of the 30 minerals, identified as critical minerals by the government of India. Lithium is a crucial mineral for the country’s clean energy chain.
Clean energy refers to replacing fossil-based energy systems like coal, petroleum oil etc with clean energy like battery-powered energy systems.
Lithium is used to manufacture lithium-ion batteries, which power many devices such as laptops, smartphones, electric vehicles (EVs), and energy storage systems for renewable energy sources like solar and wind power.
Dependent on Import
- India is 100 per cent dependent on imports for its lithium requirement.
- To attain self-sufficiency in Lithium, the Indian government has encouraged Indian companies to invest in lithium mines abroad and search for lithium reserves in India.
- Lithium reserves have been discovered in the Raesi region of Jammu and Kashmir, but mining has not started.
Investment in Argentina
The recently signed MoU is the second such agreement to be signed between Indian companies and the Catamarca province of Argentina.
In January 2024, the central government-owned public sector company Khanij Bidesh India Ltd (KABIL) signed an agreement with Catamarca Minera Y Energética Sociedad Del Estado (CAMYEN) to acquire five lithium brine blocks in Argentina.
CAMYEN is a state-owned mining and energy company in the Argentine province of Catamarca.
Under the MoU, KABIL has the exclusive right to explore lithium in these five blocks and use it commercially.
Importance of Argentina
- According to the United States Geological Survey’s Lithium Statistics and Information 2023 report, Argentina holds 20 per cent of the world’s 98 million tonnes of lithium resources.
- Argentina’s neighbour, Bolivia, has the largest lithium resources in the world.
- Argentina is part of the “Lithium Triangle” along with Chile and Bolivia. These three countries hold more than half of the world’s total lithium resources.
- Argentina has the second-largest lithium resources, third-largest lithium reserves and the fourth-largest producer globally.
Capital of Argentina- Buenos Aires
Currency - Argentine peso
President- Javier Milei
Government approves Rs.16,300 crore National Critical Mineral Mission
