India’s KABIL seals $24 million lithium exploration pact with Argentina

India’s state-owned firm, Khanij Bidesh India Ltd (KABIL), sealed a lithium exploration agreement worth 2 billion rupees ($24 million) with an Argentinian state-run enterprise on Monday. The virtual signing ceremony, attended by Union Minister Pralhad Joshi, marked the first-ever lithium exploration and mining venture by an Indian government company.

Under the deal, KABIL will undertake the exploration and development of five lithium brine blocks spanning 15,703 hectares in Argentina’s Catamarca province. The project involves the establishment of a KABIL branch office in Catamarca, Argentina.

Joshi highlighted the agreement’s historical significance, calling it “a crucial step in driving the energy transition for a sustainable future.” He underscored the importance of ensuring a resilient and diversified supply chain for critical minerals essential to various Indian industries.

Argentina, a key player in the “Lithium Triangle” alongside Chile and Bolivia, holds over half of the world’s lithium resources, ranking second in lithium resources, third in lithium reserves, and fourth in global lithium production.

This strategic move not only boost India’s lithium supplies but also strengthens bilateral ties with Argentina, contributing significantly to the sustainable development of the mining sector.