India set to Buy 5 Lithium Reserves in Argentina

Context: India is set to finalize an agreement to acquire five lithium blocks for exploration and development in Argentina.

India to Acquire five Lithium Reserves in Argentina

• India-Argentina Lithium Deal: An agreement will be 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.
• Mineral Partnership: This is India’s second attempt to sign a foreign partnership for sourcing critical minerals after Australia. 
• In 2022, India signed a memorandum of understanding with Australia’s Critical Minerals Facilitation Office (CMFO) to explore five blocks of lithium and cobalt.

Lithium Reserves in Argentina

• Global status: According to the United States Geological Survey’s (USGS) Lithium Statistics and Information 2023 report, Argentina holds 21 per cent of the world’s 98 million tonnes of lithium reserves, second only to Bolivia.
• Concentration in Salt Flats: These reserves are primarily concentrated in salt flats within the provinces of Catamarca, Salta, and Jujuy, forming part of the Lithium Triangle.
  • Its salt-lake lithium provides a cost-effective extraction method compared to hard-rock mining. 

About Lithium:

• About: It is a soft, silvery metal having the lowest density of all metals. It reacts vigorously with water.
• Applications: 
  • Manufacturing lithium-ion batteries used in smartphones, laptops, electric vehicles (EVs) and energy storage systems. 
  • Lithium is employed in certain medical treatments, ceramics, and as a component in aerospace technology.

Lithium Status in India

• Lithium Reserves in India: Reasi district in Jammu and Kashmi holds approximately 5.9 million tonnes (mt) of lithium reserves. 
• Lithium Import: Currently, India meets its complete lithium demand through import. 
  • According to the Ministry of Commerce and Industry data, India’s lithium imports in FY23 marked a 58 percent increase from FY22,. 
• Source of Lithium Import: Over 95 per cent of India’s lithium imports originate from Hong Kong and China.

To Read More: Lithium Reserves

News Source: Business Standard