India has identified two lithium mines and one copper mine in Argentina for a possible acquisition or long-term lease. Commercial evaluation of the mines have begun and a report regarding this is expected soon.
Mining process
Lithium is found in cedemine rock formation and in brine form, which is called salar in Latin America. The other alternative is its liquid form. In South America, lithium is typically extracted from the salt flats by pumping brine into ponds and processing the lithium salts that crystallise once the water has evaporated. It requires time and investment to set up, but thereafter, the production is cheaper than the hard-rock mining practiced in Australia.
Argentina’s Economy and Its Potential to Benefit from Lithium Reserves
Argentina is home to large deposits of lithium, a valuable silvery-white alkali metal, in the Atacama region. The country’s economy has faced significant challenges, including currency depreciation, economic contraction, and high inflation, since 2018 when it requested a $57 billion loan from the International Monetary Fund. However, Argentina’s rich lithium reserves have the potential to contribute to the country’s economic stability.
India’s Efforts to Secure Lithium Reserves in Argentina and the Lithium Triangle
KABIL, a joint venture formed in 2019 by National Aluminium Company Limited (NALCO), Hindustan Copper Limited (HCL), and Mineral Exploration Corporation Limited (MECL), has signed an agreement with an Argentine company to search for lithium deposits in the South American country. KABIL, whose mandate is to acquire strategic minerals such as lithium and cobalt abroad, is also exploring potential reserves in Bolivia and Chile, the other two countries in the Lithium Triangle. By securing access to these resources, India may be able to reduce its reliance on China as a key source of raw materials and cells.
India is exploring ways to secure supplies of metals such as copper and lithium from some of the world’s top producers by acquiring overseas mines, as part of efforts to meet rising demands.
s part of its drive to explore overseas mineral assets, the Indian government has formed Khanij Bidesh India (KABIL) Ltd – a company set up by state firms National Aluminium Company Ltd , Hindustan Copper Ltd and unlisted Mineral Exploration cork.
Lithium is an important raw material used to make electric vehicle batteries. As part of a broader push by the government to meet its decarbonisation goals, India has introduced a clutch of measures to boost sales of electric vehicles (EVs).
This is just the beginning of India’s quest in Argentina. Indian Industries are going to be hugely benefitted from this discovery.
