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Source: The post is based on the article “Lithium find in J&K: Chile, with most reserves, ready to share know-how” published in The Indian Express on 3rd April 2023.
Syllabus: GS 2 – International Relations
Relevance: about Chile and India bilateral relations
News: The article discusses the ways through which Chile can help India in exploiting its lithium resources and other areas of cooperation between the two.
How can Chile help India in exploiting its lithium resources?
Chile is the country with the most lithium reserves (48% of the world’s total lithium deposits) and it is home to the company SQM, which is the second largest global lithium producer.
SQM has already invested in Australia where they have a Chilean-Australian joint venture called Covalent.
Therefore, SQM can extend technical expertise in exploiting inferred lithium resources of 5.9 million tonnes in Salal-Haimana area of Reasi district in Jammu and Kashmir.
Must Read: Lithium Reserves in India: Strategic Significance and Concerns – Explained
What are the different areas of cooperation between India and Chile?
Currently, there is an agreement on trade of goods between the two nations.
The discussions were also made in 2019 by India for procurement of lithium from Chile. However, the initiative came to a halt due to the Covid.
Further, during the visit of the President of India to Chile in 2019, a Memorandum of Understanding (MoU) between India and Chile on cooperation in geology and minerals was renewed for five years.
Khanij Bidesh India Limited (KABIL) has also taken efforts last year to source strategic minerals lithium and cobalt from countries like Australia, Argentina and Chile.
There were also discussions going on in wide ranging areas including trade, technology, renewables, space, mining and education between the two nations.
