Why is it in the news?
- India is nearing a deal to acquire five lithium blocks for exploration and development in Argentina.
- The agreement will be signed between Khanij Bidesh India Ltd. (KABIL) and CAMYEN, a state-owned mining and energy company in Argentina.
About Lithium
- Lithium is a chemical element (Li) belonging to the alkali metal group.
- It is a soft, silvery-white metal and highly reactive.
- Applications: Primarily used in rechargeable lithium-ion batteries; Widely employed in electronic devices (smartphones, laptops) and electric vehicles.
- Energy Storage: Lithium-ion batteries crucial for energy storage in portable devices, electric vehicles, and grid energy storage.
- Global Production: Major lithium-producing countries include Australia, Chile, and Argentina.
- Lithium Triangle: Refers to a region in South America (Argentina, Bolivia, and Chile) with significant lithium reserves. Holds 58% of the world’s known lithium reserves.
India and Lithium Triangle Countries (LTCs)
- India increasing diplomatic outreach to LTCs for accessing lithium.
- Seeking lithium resources for lithium-ion battery production, especially for electric vehicles and renewable energy storage.
- Ambitious plan under the PLI scheme to manufacture Advanced Chemistry Cell (ACC) to boost battery production.
- Despite aspirations, India currently imports 100% of its lithium metal, mainly from East Asian countries.
- States like Telangana aiming to become the EV manufacturing hub of India.
- Simultaneously exploring lithium deposits in places like Jammu and Kashmir.
Conclusion
- Part of India’s strategy for a stable supply chain of critical minerals, essential for lithium-ion battery production.
- Government promoting electric vehicles for environmental concerns and reducing dependence on fossil fuels.
- Securing a reliable supply of lithium crucial for the development and growth of the electric vehicle industry in India.
