LITHIUM
DEAL - ECONOMY
News:
India closing in on
lithium-deal with Argentina, tapping Australia and Chile too
What's
in the news?
●
The Mines Ministry, through the
state-owned Khanij Bidesh India Ltd (KABIL), has entered into a draft
exploration and development agreement
with Argentinan miner CAMYEN for possible acquisition and development of
five-odd lithium blocks.
●
It has also entered into a non-disclosure agreement with Australia and Chile for
lithium exploration.
Lithium:
●
Also known as White gold.
●
It is a soft, silvery-white non-ferrous metal.
●
It never occurs freely in nature, but only
in (usually ionic) compounds, such as pegmatitic minerals, which were once the
main source of Lithium.
●
Due to its solubility as an ion, it is
present in ocean water and is commonly obtained from brines.
●
It is one of the key components in rechargeable batteries for mobile phones,
laptops, digital cameras and electric vehicles.
●
It is also
used in some non-rechargeable batteries for things like heart pacemakers, toys
and clocks.
Lithium
reserves: Global
●
The Lithium
Triangle is a region of the Andes that is rich in lithium reserves,
encompassed by the borders of Argentina,
Bolivia, and Chile.
●
Latin American nations, particularly Chile
and Argentina, play a pivotal role in the global lithium supply chain.
●
Collectively, they contribute 30–35% of
the world's lithium supplies.
●
Chile,
with
11% of global lithium reserves, alone supplies 26% of the global requirements.
●
Argentina,
with nearly one-fifth of the global resources, contributes about 6%.
●
With estimates of 21 million tonnes, Bolivia holds aboutone-quarterr of the
entire global resource – including the world’s single-biggest lithium deposit,
the Salar de Uyuni salt flat, which is visible from space.
●
Argentina
has the world’s second-largest lithium reserves, totalling around 17 million
tonnes.
●
The Salar del Hombre Muerto salt flat is a
notable lithium resource in Argentina, where the solar evaporation of brine
pools is the technique used to extract it.
●
Although the US has the world’s fourth-largest lithium reserves, measured at 6.8
million tonnes according to the US Geological Survey, production activity in
the country is minimal.
●
Australia
may only rank fifth on the list of largest overall reserves with 6.3 million
tonnes, but it was by far the world’s
biggest lithium producer in 2019.
●
China
is sixth-placed on the list, with overall lithium reserves estimated at 4.5
million tonnes. In 2019, the country produced 7,500 tonnes of the metal – the
third-highest level worldwide.
Recent Lithium reserves findings in
India:
●
In February 2023, the Geological Survey of
India (GSI) established lithium-inferred resources of 5.9 million tonnes in the Salal-Haimana area of the Reasi district in
Jammu and Kashmir (J&K).
●
After Jammu and Kashmir, lithium reserves
have been traced in Rajasthan's Degana.
○
Officials have even alleged that the
quantity of lithium here can meet around 80% of India's demand.
●
November 18, 2023, Director General of
Geological Survey of India (GSI) said that reserves of the mineral 'lithium',
which is called the treasure of the future, have been found in Koderma district, Jharkhand.
KHANIJ
BIDESH INDIA LTD. (KABIL):
●
A joint venture company namely Khanij
Bidesh India Ltd. (KABIL) is to be set up with the participation of three
Central Public Sector Enterprises namely, National
Aluminium Company Ltd. (NALCO), Hindustan Copper Ltd. (HCL) and Mineral
Exploration Company Ltd. (MECL).
●
The objective of constituting KABIL is to
ensure a consistent supply of critical and strategic minerals to the Indian
domestic market.
●
While KABIL would ensure mineral security
of the Nation, it would also help in realizing the overall objective of import
substitution.
●
The equity participation between NALCO,
HCL and MECL is in the ratio of 40:30:30
Why
does India push for Lithium resources?
●
Critical
minerals: India's increased focus on critical minerals,
including lithium, is driven by its commitment to green energy and reducing
carbon footprints.
●
Import
substitution: Known as 'white gold,' lithium is a
cornerstone in India's transition to green energy, with applications ranging
from EVs to lithium-ion battery production. In order to avoid import and save
huge import bills, India shows interest in lithium reserves around the globe
through KABIL.
●
Strategic
importance: Owning resources like Lithium, which is
critical for the economy, is imperative for ensuring a secure, resilient supply
chain.