India has signed a lithium exploration agreement with Argentina, marking a significant step towards reducing carbon emissions and reducing India’s dependence on China for lithium import. The agreement consists of five lithium brine blocks covering 15,703 hectares.
The central government aims to strengthen bilateral relations and contribute to sustainable development of the mining sector by providing an environment for critical minerals required for various industries. The agreement ensures a flexible and diverse supply chain.
Lithium is crucial for energy conversion and is essential in lithium-ion batteries used in electric vehicles and battery energy storage systems. India has been dependent on countries like China, Australia, and Argentina for lithium, but the new deal could allow India to compete with China in lithium mining. In February, India announced reserves of 59 lakh tonnes of lithium in Reasi, Jammu, and Kashmir, which could reduce India’s dependence on China.
