Lithium Exploration: An Agreement Signed Between India and Argentina

Utkarsh Classes Last Updated 06-03-2024

Lithium Exploration: An Agreement Signed Between India and Argentina

Agreements and MoU 3 min read

India's state-owned company, Khanij Bidesh India Ltd. (KABIL), has signed a lithium exploration agreement worth 2 billion rupees ($24 million) with a state-run enterprise CATAMARCA MINERA Y ENERGÉTICA SOCIEDAD DEL ESTADO (CAMYEN SE) in Argentina.

About Lithium Exploration Agreement

The agreement was signed virtually and was attended by Union Minister Pralhad Joshi. This marks the first time an Indian government company has ventured into lithium exploration and mining.

KABIL will explore and develop five lithium brine blocks across 15,703 hectares in Argentina's Catamarca province under the agreement.
The project requires the creation of a KABIL branch office in Catamarca, Argentina.
Argentina along with Bolivia and Chile is an important contributor to the "Lithium Triangle. Bolivia is the largest holder of Lithium reserves.
- Argentina is second in lithium resources, third in lithium reserves, and fourth in global lithium production, with over 50% of the world's lithium resources.
The recent agreement between India and Argentina on lithium exploration will help to improve ties between the two countries.
India's recent decision to partner with Argentina strategically enhances its lithium supplies.
This partnership is expected to contribute significantly to the mining sector's sustainable development.

Lithium is mainly used in electronics production, especially in rechargeable lithium-ion batteries.

These batteries are used for electric vehicle manufacturing and battery storage on a larger scale.

India's recent Lithium reserve discovery

The Geological Survey of India (GSI) has identified significant lithium reserves of 5.9 million tonnes in the Salal-Haimana region of the Reasi district in Jammu and Kashmir (J&K).

Lithium is also discovered from Revant Hill of Degana, Nagaur of Rajasthan.
India currently depends on imports for all major components required for lithium-ion cell manufacturing.
India has spent approximately US$ 20.64 million on lithium-based imports in the first eight months of FY 2022-23 due to a sharp increase in demand.
The discovery of lithium reserves in the Reasi district will decrease India’s dependence on Lithium imports.