KABIL
AND LITHIUM BLOCKS IN ARGENTINA - ECONOMY
News: India
acquires five lithium blocks in Argentina
What's
in the news?
●
In a significant development, India is
poised to secure exploration and
development rights for five lithium blocks in Argentina, marking its second
international foray into critical minerals after a partnership with Australia
in 2022.
Key
takeaways:
●
India has taken a crucial step towards
reducing its ₹24,000 crore lithium import dependency, primarily sourced from
China. The deal was finalized between Khanij Bidesh India Ltd. (KABIL) and
Catamarca Minera Y Energética Sociedad Del Estado (CAMYEN), an Argentine
state-owned mining and energy company.
●
This is the first-ever lithium exploration and mining project undertaken by a
government company in India.
Argentina’s
Lithium Reserves:
●
Argentina, holding 21% of the world’s lithium reserves concentrated in the Lithium
Triangle, is a key partner for India.
●
The salt-lake lithium extraction method
employed in Argentina proves economically favourable, contributing
significantly to production.
Significance
of the Deal:
1.
Strategic Importance:
●
This acquisition aligns with India’s
pursuit of self-sufficiency in meeting
clean energy demands, especially for electric vehicles.
●
The exploration and development agreement
is a crucial step towards achieving India’s goal of becoming a manufacturing
hub for electric vehicles by 2070.
2.
Reducing Import Dependency:
●
India’s lithium requirements, valued at
around ₹24,000 crore, are primarily
met through imports, with a significant portion originating from China.
3.
Unlocking Technical Expertise:
●
The Union Minister for Mines, highlights
that this initiative not only addresses India’s lithium sourcing needs but also
brings valuable technical and
operational experience in brine-type lithium exploration, exploitation and
extraction.
Go
back to basics:
Lithium:
●
Lithium is a non-ferrous metal and is one of the key components in EV batteries.
●
It has the symbol Li and is a chemical
element.
●
It’s a silvery-white metal with a delicate texture.
●
It is the lightest metal and the lightest solid element under normal circumstances.
●
It must be kept in mineral oil since it is
very reactive and combustible.
●
It is both
an alkali and a rare metal.
Significance:
●
Lithium, often called ‘white gold’, forms the cornerstone of the country’s transition to
green energy options.
●
It is used across various categories,
including energy storage solutions,
batteries for mobile phones and in EVs.
India’s
Lithium Reserves:
●
India has recently discovered 5.9 million
tonnes of lithium reserves in Jammu
& Kashmir and ranks seventh globally.
●
The primary lithium reserve in India has
been discovered in the Salal-Haimana
area of Reasi District in Jammu and Kashmir, with additional smaller
reserves identified in Karnataka.
●
Presently, India fulfils its entire
lithium demand through imports.
○
In the fiscal year 2023, there was a
notable increase in lithium imports in India, reaching approximately $3 Billion
(around ₹24,900 crore), indicating a 58% growth compared to the figures in
FY22.
●
More
than 95% of India's lithium imports are sourced from China and Hong Kong.
Global
Reserves of Lithium:
Approximately half of the
world's lithium resources are concentrated in Latin America, primarily in
countries such as Bolivia, Argentina and Chile along with significant deposits
in USA, Australia and China.
●
Bolivia
has the highest identified lithium resources in the world with 20 million
tonnes, as per the US Geological Survey data.
●
Argentina
has the second-largest lithium reserve estimated to be close to 20 million
tonnes.
○
Argentina is a key participant in the 'Lithium Triangle', alongside Chile and
Bolivia.
●
The United
States follows Argentina with 12 million tonnes of lithium reserves.
●
Chile
ranks fourth globally with 11 million tonnes of lithium reserves.
●
Australia
occupies the fifth spot with 7.9 million tonnes of lithium reserves, according
to the available data.
●
China,
the largest country in Asia, ranks sixth globally with 6.8 million tonnes of
lithium reserves. China, without having the largest lithium reserves, continues
to dominate lithium mining and processing in the world.
Lithium
Triangle:
●
The Lithium Triangle is a region of the
Andes that is rich in lithium reserves, encompassed by the borders of Argentina, Bolivia and Chile.
●
The lithium in the triangle is
concentrated in various salt pans that
exist along the Atacama Desert and neighbouring arid areas, the largest
areas of three main salt pants that define its vertex.
Khanij
Bidesh India Ltd (KABIL):
●
KABIL is a joint venture between National
Aluminium Company (NALCO), Mineral Exploration Corporation Ltd (MECL) and
Hindustan Copper Ltd (HCL).
Ministry
Oversight:
●
Under the purview of the Ministry of Mines, KABIL’s equity
participation is distributed in the ratio of 40:30:30 among NALCO, HCL and MECL
respectively.
Mission:
●
KABIL’s core mission is to ensure India’s mineral security and achieve
self-reliance in critical and strategic minerals.
●
It identifies and acquires overseas
mineral assets like lithium and cobalt.
Objective:
●
It carries out identification, acquisition, exploration, development, mining and
processing of strategic minerals foreign places for business use and
meeting the country’s requirement of these minerals.
●
It has been concentrating on securing copper, cobalt and lithium and in some
cases nickel supplies among the
critical minerals identified.
Global
Partnerships:
●
KABIL fosters partnerships with
mineral-rich countries worldwide, such as Australia,
Africa and South America, leveraging India’s expertise in exploration and
mineral processing to create mutually beneficial economic opportunities.