New Delhi/New York: Coal India Ltd, a state-run enterprise, is actively exploring lithium blocks in Argentina in collaboration with a U.S. company to secure a stable supply of this crucial battery material, according to an Indian source familiar with the matter.
This initiative is part of India’s commitment under the U.S.-led Minerals Security Partnership (MSP), which it joined last year to ensure a steady supply of minerals essential for achieving zero-carbon goals. Prime Minister Narendra Modi’s administration has identified 30 minerals, including lithium, as critical for promoting clean energy adoption.
On Monday, India and the United States announced joint investments in a lithium project in South America and a rare earths deposit in Africa, aimed at diversifying global supply chains for critical minerals. Reuters previously reported India’s efforts to collaborate with multiple nations, including the U.S., to develop domestic lithium processing capabilities and reduce dependence on China.
“Coal India has come forward for the Kachi block in Argentina in which a U.S. company and two other countries are interested to explore under the MSP,” the source disclosed, requesting anonymity due to the sensitive nature of ongoing discussions. Preliminary studies for the project are currently underway.
Australian mining company Lake Resources , which operates a lithium project in Kachi, aims to produce 50 kilotonnes of battery-grade lithium annually by 2030.
Following the Reuters report, Coal India’s shares responded positively, initially rising by 1.2% before stabilizing to a 0.3% increase. Prior to the news, the company’s shares had experienced a slight decline of 0.2%.
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In February, U.S. Secretary of State Antony Blinken indicated during his visit to Argentina that the U.S. was exploring investment opportunities in critical minerals, particularly lithium.
Coal India and India’s Ministry of Mines did not immediately respond to Reuters’ requests for comments.
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Under the MSP, which India joined last year, New Delhi has been invited to participate in 20-25 critical minerals projects. The Indian government has identified four projects, two of which involve collaboration with the United States, the source noted.
The second identified project is located in the Kangankunde block in Malawi, where India’s state-owned IREL (India) Ltd is conducting exploration for rare earths. IREL did not provide an immediate response to Reuters’ request for comment.
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Additionally, the Indian government has encouraged miners to explore critical minerals in Australia’s Dubbo region, the source added.
India has also proposed a critical minerals trade agreement with the U.S., akin to the pact between the U.S. and Japan, which would eliminate tariffs on certain goods. Discussions for a bilateral Critical Minerals Memorandum of Understanding (MoU) between India and the U.S. were confirmed by both countries on Monday.
