Correct Answer :   Argentina

The Centre on Monday (15th Jan 2023) signed an agreement to acquire five lithium brine blocks for exploration and development in Argentina. The agreement was signed between Khanij Bidesh India Ltd (KABIL) and Catamarca Minera Y Energética Sociedad Del Estado (CAMYEN), a state-owned mining and energy company in the Argentine province of Catamarca.   

This is the first ever lithium exploration and mining project by a state-owned company. KABIL will start exploration and development of five lithium brine blocks — Cortadera-I, Cortadera-VII, Cortadera-VIII, Cateo-2022-01810132 and Cortadera-VI — covering an area of about 15,703 hectares in the Catamarca province.  

Business Standard reported on the potential deal last month.   

Calling the deal historic for both India and Argentina, Union Coal Minister Pralhad Joshi said: “We are scripting a new chapter in bilateral ties which will not only play a crucial role in driving the energy transition for sustainable future but also ensure a resilient and diversified supply chain for critical and strategic minerals essential for various industries in India.”  

With this agreement, KABIL has obtained exploration and exclusivity rights to evaluate, prospect and explore and subsequent to existence/discovery of lithium mineral exploitation rights for commercial production, the Ministry of Mines said on Monday (15th Jan 2024).

The deal will not only boost India’s quest for sourcing lithium but will also help in bringing in technical and operational experience for brine type lithium exploration, exploitation and extraction.  

Argentina holds 20 per cent of the world’s 98 million tonnes of lithium resources, second only to Bolivia. according to the United States Geological Survey’s (USGS) Lithium Statistics and Information 2023 report.   

The country is also part of the “Lithium Triangle” along with Chile and Bolivia, which together hold more than half of the world’s total lithium resources.  

Argentina has second largest lithium resources, third largest lithium reserves and forth largest production in the world.

India is also engaged in talks with Argentina because its salt-lake lithium provides a cost-effective extraction method compared to hard-rock mining. This makes it commercially appealing and contributes significantly to production.

KABIL is also preparing to set up a branch office at Catamarca, Argentina. The project cost is about 200 crores.

After Australia, this is India’s second attempt to sign a foreign partnership for sourcing critical minerals. In 2022, India signed a memorandum of understanding with Australia's Critical Minerals Facilitation Office (CMFO) to explore five blocks — two dedicated to lithium and three to cobalt.

The deal is aimed at bringing sustainable development of the mining sector, ensuring a resilient and diversified supply chain for critical and strategic minerals essential for various industries.

Currently, the country meets the lithium demand through 100 per cent import. India’s lithium imports in FY23 amounted to roughly $3 billion (approximately ?24,900 crore), marking a 58 per cent increase from FY22, according to the Ministry of Commerce and Industry data. The data also reveals that over 95 per cent of India’s lithium imports originate from China and Hong Kong.

The exploration and development agreement for five lithium blocks will aid India’s objective to attain net-zero emissions by 2070 and establish itself as a manufacturing hub for electric vehicles.

Lithium finds extensive use in various applications, particularly in the manufacturing of lithium-ion batteries. These batteries power a wide array of devices such as smartphones, laptops, electric vehicles (EVs) and energy storage systems for renewable energy sources like solar and wind power. Also, lithium is employed in certain medical treatments, ceramics, and as a component in aerospace technology..

Source : Business Standard