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After signing a development and exploration agreement with Argentina’s CAMYEN for lithium sourcing, India’s Mines Ministry is tapping into Chile and eyeing similar acquisition opportunities. A team of Ministry officials will be conducting due diligence for lithium blocks there soon, and discussions are currently underway.
The Ministry, which has signed a non-disclosure agreement with Chilean state-run company ENAMI, is now finalising a team of officials that will visit the LatAm nation to secure offtake agreements, sources aware told a news media.
The acquisition will be for brine-based lithium blocks.
A non-disclosure agreement (NDA) has been signed with ENAMI, the state-owned company of Chile, for the exchange of information and data sharing in May, the official said, adding that KABIL will once again be at the forefront of the discussion.
KABIL’s initiatives
KABIL or Khanij Bidesh India Ltd, a joint venture of NALCO, Hindustan Copper and MECL, is the entity that has been trying to secure critical mineral supplies from overseas. “A team of KABIL will visit shortly for technical due diligence of few brine type lithium blocks of ENAMI,” the official said.
Chile, Argentina, and Bolivia form the world’s Lithium Triangle, accounting for most of the resources globally.
KABIL is also exploring possibilities of sourcing these minerals from other potential countries in Africa and other continents. The state-owned entity and Ministry will also be leveraging various international collaborations and partnerships of the Government of India, like the Mineral Security Partnership (MSP), as it searches for the mineral, commonly called ‘white gold’.
Lithium, a white alkaline material, forms the cornerstone of India’s switch to sustainable energy options and reduction in carbon footprint. Minerals are key in electric vehicles, battery-making, mobile phones, and other energy storage solutions.
India currently imports all its requirements, primarily from China. Auctions are underway for two blocks – one each in Jammu and Chhattisgarh.
Indian imports
As per data available with India’s Commerce Ministry, in FY23, lithium imports were worth ₹266 crore, up 62% y-o-y, while lithium oxide and hydroxide imports were ₹553 crore, up 156% y-o-y.
Lithium carbonates imports were ₹179 crore, up 176%.
Lithium-ion imports stood at over ₹23,000 crores, up 69%, y-o-y.
Earlier this month, India announced the acquisition of five lithium blocks in Argentina – its first ever. Under the agreement, around ₹200 crore will be invested through KABIL to develop and explore these blocks. In the case of mineral discovery, the state-owned entity will have commercial production rights.
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