Context: India is close to striking a deal on acquiring five lithium blocks for exploration and development in Argentina. The agreement will be signed between Khanij Bidesh India Ltd. (KABIL) and CAMYEN, a state-owned mining and energy company in Argentina.

Need 

• Securing critical minerals: India's foray into lithium acquisitions in Argentina and engagements with key players in Chile reflects a proactive approach in securing critical minerals for its burgeoning green energy sector.

• Sustainable energy solutions: As the world shifts towards sustainable energy solutions, India's strategic moves in the lithium market position it as a key player in the global transition to clean and renewable energy sources.

About Lithium

• Lithium is a chemical element with the symbol Li and atomic number 3. 

• It belongs to the alkali metal group of the periodic table and is a soft, silvery-white metal. 

• It is a highly reactive metal due to its position in the alkali metal group.

• Applications: Lithium has various industrial applications, most notably in rechargeable lithium-ion batteries. 

• These batteries are widely used in electronic devices such as smartphones, laptops, and electric vehicles.

• Energy Storage: Lithium-ion batteries have become a crucial technology for energy storage.

• They are employed in portable electronic devices, electric vehicles, and for grid energy storage, playing a key role in the transition to renewable energy.

• Global Production: The majority of the world’s lithium production comes from countries like Australia, Chile, and Argentina. 

• These countries have significant lithium reserves and are major players in the global lithium market.

India and Green Energy Transition

• India, in its pursuit of securing critical minerals for its green energy transition, has taken a significant step by entering into a draft exploration and development agreement with Argentinian miner CAMYEN.

• This move is orchestrated by the Mines Ministry through Khanij Bidesh India Ltd (KABIL), a state-owned entity.

• The focus lies on acquiring and developing lithium blocks, a key component in the production of lithium-ion batteries crucial for electric vehicles (EVs) and energy storage solutions.

Lithium Triangle

• The “Lithium Triangle” refers to a region in South America that contains some of the world’s largest lithium reserves. 

• This triangular-shaped region encompasses parts of Argentina, Bolivia, and Chile.

• Argentina, Bolivia and Chile are assessed to possess 58 percent of the world’s known lithium reserves.

• These three countries are significant players in the global lithium market due to the abundance of lithium resources found in the area.

The Significance of Latin America in Lithium Supply Chain

• Latin American nations, particularly Chile and Argentina, play a pivotal role in the global lithium supply chain.

• Collectively, they contribute 30–35% of the world's lithium supplies.

• Chile, with 11% of global lithium reserves, alone supplies 26% of the global requirements.

• Argentina, with nearly one-fifth of the global resources, contributes about 6%.

India's Push for Critical Minerals

• Critical minerals: India's increased focus on critical minerals, including lithium, is driven by its commitment to green energy and reducing carbon footprints.

• White gold: Known as 'white gold,' lithium is a cornerstone in India's transition to green energy, with applications ranging from EVs to lithium-ion battery production.

Domestic Auctions and Import Scenario

• Lithium regions in India: India has recently put up lithium blocks for auction, including one in Jammu and Kashmir and another in

• Imports: Despite domestic efforts, a significant portion of India's lithium requirements, spanning EVs, battery manufacturing, and energy storage solutions, is met through imports, constituting an import bill of around Rs 24,000 crore.

KABIL's Focus and Global Engagements

• KABIL, a joint venture involving companies like NALCO, HCL, and MECL, is strategically positioned to secure lithium and cobalt for the domestic market.

• As of September 2023, the focus includes engaging with projects in Australia, Argentina, and Chile.

Conclusion

• India’s engagement with the Lithium Triangle countries is part of its broader strategy to ensure a stable supply chain for critical minerals, especially those essential for the production of lithium-ion batteries. 

• The government has been promoting the adoption of electric vehicles to address environmental concerns and reduce dependence on fossil fuels. 

• Securing a reliable supply of lithium is crucial for the development and growth of the electric vehicle industry in India.