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India Enters Lithium Race, Partnering Up With Argentina for Exploration Efforts

14:23, 4 March 2024

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Swapna Nair

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The governor of the lithium-rich Catamarca province in Argentina, Raúl Jalil, is expected to visit India this year, as reported by Camyen, the country's largest state-owned mining company. Jalil's planned trip has the potential to bolster India's initiatives to ensure a reliable source of lithium, a vital element in electric vehicle batteries.

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The Indian Ministry of Mines announced that this partnership will enhance Kabil's (Khanij Bidesh India Ltd) efforts to secure lithium for India, while also providing valuable technical and operational expertise in Brine-type lithium exploration, exploitation, and extraction.

Kabil is expected to pour ₹200 crore, that is, $24.1 million into the project.

Earlier this year, Camyen and India's state-owned mining company, Kabil, agreed to explore and develop five lithium blocks.

Why Should India Rush Into Lithium Exploration?

Several global companies, such as China's Zijin Mining Group, have ventured into the Argentine lithium market.

The South American country ranks as the world's fourth-largest producer of lithium, possessing the third-largest reserves worldwide, trailing behind Chile and Australia.

“It is not too late for Indian companies to enter Argentina for lithium exploration but if you consider the five years of exploration, Indian firms should start to move in and take action in terms of involvement in the development of lithium," Camyen president, Susana Peralta, told Mint.

In addition, Camyen is presently in talks with an Indian company regarding a potential mining deal for copper and gold, she added.

Based on McKinsey estimates, global lithium production is anticipated to increase by 20% annually, reaching 3 million tonnes by 2030. Rising sales of electric vehicles and the energy transition's needs are anticipated to significantly elevate the demand for lithium, presenting favourable conditions for countries like Argentina.

India has currently identified lithium reserves in Jammu & Kashmir, Rajasthan, Karnataka, and Jharkhand.

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