India Signs Pact With Argentina For Lithium Exploration Project

India has signed an agreement with Argentina for the exploration of lithium in the South American nation as the government looks to tap the supply of the rare element critical in the transition towards an electric future.

The government of India has achieved a significant milestone with the signing of an agreement between Khanij Bidesh India Ltd. and Argentina’s state-owned Catamarca Minera Y Energética Sociedad Del Estado, according to a government statement on Monday. The project is expected to cost about Rs 200 crore.

This is the first-ever lithium exploration and mining project by a government-owned company. Kabil will start the exploration and development of five lithium brine blocks, covering an area of about 15,703 hectares in the Catamarca province of Argentina, the statement said.

Kabil has obtained exploration and exclusivity rights for the five blocks to evaluate, prospect and explore lithium and rights for its commercial production, the statement said. This 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, it said.

Argentina is part of the Lithium Triangle, along with Chile and Bolivia, and has more than half of the world’s lithium reserves. It has the world’s second-largest lithium resources, third-largest lithium reserves and fourth-largest production.

"This is a historic day for both India and Argentina as we are scripting a new chapter in bilateral ties with the agreement signing between Kabil and Camyen—a step that will not only play a crucial role in driving the energy transition for a sustainable future but also ensure a resilient and diversified supply chain for critical and strategic minerals essential for various industries in India,” Pralhad Joshi, minister of parliamentary affairs, coal and mines of India, who attended the event virtually, said in the statement.