Lithium-Deal with Argentina

• 02 Jan 2024

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.

Key Points

• Lithium is an alkali mineral, also called ‘white gold’. It is soft, silvery-white metal, the lightest metal of the periodic table.
• Major Properties of lithium include high reactivity, Low Density and Excellent Electrochemical Properties
• Lithium is found naturally in various minerals, including spodumene, petalite, and lepidolite and is extracted from these minerals and refined into lithium metal or its compounds.
  • The top producers of lithium are Australia, Chile, China, and Argentina.
• It is a crucial component of rechargeable batteries used in smartphones, laptops, electric vehicles, and other electronics.
  • Lithium compounds are used to strengthen glass and ceramics, making them more durable and heat-resistant.
  • It is used as a mood stabilizer in the treatment of bipolar disorder.
  • Lithium greases are used in high-pressure and high-temperature applications.
• 2023 saw a surge in lithium discoveries:
  • Massive reserves unearthed in Jammu and Kashmir (estimated 5.9 million tonnes).
  • Deposits found in Rajasthan (potentially meeting 80% of India's demand).
  • Additional reserves identified in 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.