Lithium-Deal with Argentina | 02 Jan 2024

Source: BL

Why in News?

The Ministry of Mines, Government of India through the state-owned Khanij Bidesh India Ltd (KABIL), has entered into a draft exploration and development agreement with Argentinan miner CAMYEN for possible acquisition and development of five-odd lithium blocks.

• The company has also entered into a non-disclosure agreement with Chilean miner ENAMI for “possible exploration, extraction, processing and commercialisation” of the mineral.

What is Lithium?

• About:
  • Lithium is an alkali mineral, also called ‘white gold’. It is soft, silvery-white metal, the lightest metal of the periodic table.
• Major Properties:
  • High Reactivity
  • Low Density
  • Excellent Electrochemical Properties
• Occurrence and Top Producers:
  • Lithium is found naturally in various minerals, including spodumene, petalite, and lepidolite.
    • It is extracted from these minerals and refined into lithium metal or its compounds.
  • The top producers of lithium are Australia, Chile, China, and Argentina.
    • In 2022, Australia was the world leader in terms of lithium mine production. Chile and China ranked second and third.
  • Recently, a massive lithium deposit beneath California’s Salton Sea (US), holding an estimated 18 million tons of lithium, was discovered.

• Applications:
  • Batteries: Lithium is a crucial component of rechargeable batteries used in smartphones, laptops, electric vehicles, and other electronics.
  • Glass and Ceramics: Lithium compounds are used to strengthen glass and ceramics, making them more durable and heat-resistant.
  • Medicine: Lithium is used as a mood stabilizer in the treatment of bipolar disorder.
  • Lubricants: Lithium greases are used in high-pressure and high-temperature applications.
• Lithium in India:
  • 2023 saw a surge in lithium discoveries:
    • Massive reserves unearthed in Salal-Haimna areas of Reasi district of Jammu and Kashmir (estimated 5.9 million tonnes).
    • Additional reserves identified in Koderma and Giridih regions of Jharkhand.
  • However, India has put up lithium blocks for auction: one in J&K and another in Chhattisgarh, with most of its domestic requirements, across categories like EVs, lithium-ion battery making, and other energy storage solutions, being met completely through imports. Import bill is pegged at around ₹24,000 crore.