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Source: This post is based on the article “India Signs Agreement for Lithium Exploration & Mining Project in Argentina” published in “PIB” on 15 January 2024.
Why in news?
Recently, India signed an agreement to acquire five lithium brine blocks for exploration and development in Argentina.
What is this agreement?
1) Agreement Signed Between – India and Argentina
2) Enterprises involved – Khanij Bidesh India Ltd (KABIL) and Catamarca Minera Y Energética Sociedad Del Estado (CAMYEN)
3) Aim: Bringing sustainable development to the mining sector, ensuring a resilient and diversified supply chain for critical and strategic minerals essential for various industries.
What is the significance of the agreement?
1) This is the first-ever lithium exploration and mining project signed by a state-owned company.
2) By securing lithium blocks in Argentina, India will propel its quest for self-reliance in meeting clean energy demand.
3) It will also help in bringing in technical and operational experience for brine type lithium exploration, exploitation and extraction.
4) This agreement will also aid India’s objective to attain net-zero emissions by 2070 and establish itself as a manufacturing hub for electric vehicles.
What is the status of lithium in India?
1) India’s first major lithium reserve has been found in the Salal-Haimana area of Reasi District in Jammu and Kashmir. Some small reserves are also present in Karnataka.
2) Currently, the country lithium demand is met through 100% import.
3) In the fiscal year 2023, India witnessed a surge in lithium imports, reaching around $3 billion (approximately ₹24,900 crore), reflecting a 58% rise compared to the figures in FY22.
4) Over 95 per cent of India’s lithium imports originate from China and Hong Kong.
Where are the world’s lithium reserves?
1) Worldwide Reserves – 89 million tonnes at the start of 2022
2) Mineable parts out of reserves – 22 million tonnes.
2) Half of the world’s lithium resources are concentrated in Latin America (mostly Bolivia, Chile, and Argentina), Australia, and China.
4) Argentina holds 20 per cent of the world’s 98 million tonnes of lithium resources, second only to Bolivia.
5) Argentina 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.
Note: The Lithium Triangle is a region of the Andes that is rich in lithium reserves
