Why is it in the news?
- India secures five Lithium blocks in Argentina through an agreement with CAMYEN, a State-owned entity.
- The Ministry of Mines, via Khanij Bidesh India Limited (KABIL), plays a key role in the acquisition.
| About KABIL
· Formed in 2019 as a joint venture involving NALCO, HCL, and MECL. · Tasked with identifying, acquiring, exploring, developing, mining, and processing strategic minerals like lithium and cobalt abroad. |
Significance of the Deal
- The deal strengthens India’s lithium supplies and promotes the development of lithium mining and downstream sectors in both nations.
- It aids in diversifying the critical materials’ supply chain, aligning with Global Net Zero goals.
- Addresses the dependency on China for lithium, with 54% of India’s imports originating from China, which dominates 80% of global supply.
- Aligns with the objectives of the Mineral Security Partnership (MSP), in which India is a participant.
| About Lithium
· It is a chemical element (Li) with atomic number 3, belonging to the alkali metal group. · Possesses reactive and flammable properties, requiring specialized storage conditions. · Main reserves are found in Chile, Australia, Argentina, Bolivia, and China. · Argentina, Bolivia, and Chile (Lithium Triangle) house 54% of the world’s lithium reserves. · In Argentina, lithium is present in salt pans in the Atacama Desert and neighbouring arid regions.
Lithium in India · Potential lithium recovery from brines in Sambhar and Pachpadra areas in Rajasthan and Rann of Kutch, Gujarat. · Geological Survey of India (GSI) identifies lithium resources in Jammu and Kashmir.
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| Mineral Security Partnership (MSP)
· A US-led collaboration involving 14 countries focusing on mineral supply chains (Cobalt, Nickel, Lithium, and 17 ‘rare earth’ minerals). · Members include Australia, Canada, India, the US, and the EU. · Mandate involves catalysing public and private investment, diversifying and stabilizing global supply chains, promoting environmental and social standards, and increasing recycling of critical minerals. |
