India Partners with Argentina to Build a Resilient Mineral Supply Chain

In a significant stride towards bolstering India’s position in the global lithium market, Khanij Bidesh India (Kabil), a state-owned company under the Ministry of Mines, has officially entered into a groundbreaking USD 24 million lithium exploration agreement with Argentina. The accord, marking Kabil’s maiden venture into lithium mining and exploration, entails the development of five blocks covering approximately 15,703 hectares in the mineral-rich Argentine province of Catamarca.

The ambitious initiative goes beyond borders, as Kabil gears up to establish a branch office right at the heart of Argentina’s lithium-rich landscape in Catamarca. The venture comes with an estimated project cost of 200 crore, underlining the scale and commitment of India’s foray into the global lithium market.

Pralhad Joshi, the Minister of Mines, underscored the historical importance of this partnership between Kabil and Camyen, highlighting its pivotal role in advancing India’s energy transition and fortifying a resilient supply chain for critical minerals. The agreement aims not only to secure a strategic foothold in Argentina’s lithium landscape but also to contribute significantly to India’s pursuit of a sustainable future while supporting diverse industries across the nation.

Argentina, along with Chile and Bolivia, forms the famed “Lithium Triangle,” collectively holding more than half of the world’s lithium resources. Among these nations, Argentina stands out with the second-largest lithium resources, third-largest reserves, and the fourth-largest lithium production on a global scale.

The collaboration signifies a strategic move for Kabil, granting the company exclusive rights to explore and exploit five key blocks in Argentina. This encompasses the liberty to engage in commercial production should the exploration yield positive findings and the lithium minerals be deemed economically viable.

The mineral-rich alliance between India and Argentina is poised not only to strengthen economic ties between the two nations but also to play a pivotal role in shaping the future of the global lithium market. As the world grapples with the imperative shift towards sustainable energy solutions, this partnership signals India’s proactive stance in securing essential minerals for its burgeoning industries, ensuring a resilient and self-reliant future.

This venture aligns with the broader global movement towards sustainable practices and resource management, positioning India as a key player in the international arena. As the lithium exploration project unfolds in the vast expanse of Catamarca, it symbolizes a collaborative step towards a greener, more sustainable future for both nations.

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