Argentina and India Sign a Deal for the Discovery and Extraction of Lithium

Nitin Konde, Varun Bhardwaj

24 Feb 2025 — 2 min read

India and Argentina Ink Deal for Lithium Discovery & Extraction

In order to improve collaboration in the exploration and exploitation of vital minerals, especially lithium, Argentina and India have formally established a partnership. According to a press release from the ministry, the deal was signed on February 19, in front of Raúl Alejandro Jalil, the governor of Catamarca, Argentina, and Union Minister for Coal and Mines G. Kishan Reddy. The countries talked about increasing cooperation in the mining industry, with an emphasis on lithium exploration and investment prospects, according to the Ministry of Mines' statement. The signing of a Memorandum of Understanding between the Provincial Government of Catamarca, Argentina, and Mineral Exploration and Consultancy Limited (MECL), a PSU under the Ministry of Mines, was the main event of the meeting, according to the ministry's statement. This will open the door to further cooperation in the exploration and resource development of critical minerals.

Argentina the most Reliable Ally for India

According to the statement, Argentina has substantial lithium reserves and is regarded as India's main ally in obtaining vital raw materials needed for batteries for electric vehicles and renewable energy storage. The continuing lithium exploration activities in the Catamarca region by Greenko and Khanij Bidesh India Ltd. (KABIL) were also discussed. The two parties discussed the possibility of more Indian involvement in Argentina's mining industry, including joint ventures, long-term supply agreements, and possible investment.

In order to ensure a mutually beneficial cooperation, the senior officials discussed legislative frameworks, regulatory elements, and sustainable mining methods. The interaction also emphasised how crucial infrastructure development and information sharing are to enabling India's participation in Argentina's mining sector. This deal coincides with India's larger initiatives to acquire vital minerals needed to meet its objectives for electric mobility and the clean energy revolution. In an effort to fortify its supply chains in the industry, the nation has been aggressively pursuing alliances with mineral-rich countries.

India’s EV Sector

The electric vehicle market in India is expanding quickly as local producers boost output. Businesses like Maruti Suzuki, Mahindra & Mahindra, and Tata Motors are actively growing their EV product lines. The e-Vitara was introduced at an auto exhibition in February by Maruti Suzuki, which had been a latecomer to the EV industry. New models were also displayed by other players, including VinFast from Vietnam.

Additionally, local manufacturers are solidifying their positions at the same time as Tesla's recruiting announcement. A Tesla entry might cause market disruption and put pressure on domestic companies that have invested heavily in the industry. Mahindra & Mahindra and Tata Motors have resisted any decrease in import taxes, claiming that doing so will hurt their ability to compete.