Khanij Bidesh India (KABIL) has inked a deal with Catamarca Minera Y Energetica Sociedad Del Estado (CAMYEN SE), a mining company based in Argentina, to collaborate on the exploration and development of five lithium brine blocks. This initiative is a crucial step for India to secure a stable supply of lithium, a vital component in batteries for various applications, including electric vehicles and smartphones.

This marks the inaugural lithium exploration and mining project undertaken by a government company in India, emphasising the government's commitment to acquiring technical and operational expertise in brine-type lithium exploration, exploitation, and extraction.

The lithium-rich brines, situated in Argentina's Catamarca province and spanning an area of approximately 15,703 hectares, form the focal point of the project, which is estimated to cost around Rs 2 billion ($24 million), according to a statement by KABIL.

In contrast to traditional mining methods, brines containing lithium, sourced from salt flats or underground reservoirs, will be pumped to the surface. Subsequently, these brines will be spread in expansive shallow ponds for evaporation, enhancing the lithium concentration before undergoing extraction processes.

KABIL, a government entity dedicated to identifying, acquiring, developing, processing, and commercially utilising strategic minerals abroad for supply in India, plans to establish a branch office in Catamarca, Argentina.

Argentina, being a part of the "Lithium Triangle" along with Chile and Bolivia, boasts more than half of the world's lithium resources. Recognising lithium's strategic significance in the shift towards a greener economy, the Indian government aims to secure its own lithium supply, especially after discovering substantial lithium deposits in Rajasthan in May of the previous year. These domestic deposits are anticipated to fulfill 80% of India's lithium demand.

As part of the government's commitment to green technology, the Ministry of Heavy Industries is actively establishing 50 GWh of Advanced Chemistry Cell (ACC) capacity for energy storage under the Performance Linked Incentives program. With 30 GWh already allocated, the ministry recently announced its intention to re-issue a tender for manufacturing the remaining unallocated 20 GWh. The move aligns with projections from a World Bank report indicating a 500% increase in global demand for lithium by 2050.