Introduction

Khanij Bidesh India Limited (KABIL), has taken a significant step towards securing its strategic mineral supply by acquiring five lithium blocks in Argentina.

About KABIL

Joint Venture: Khanij Bidesh India Limited (KABIL) is a Joint Venture Company established with the participation of three Central Public Sector Enterprises: National Aluminium Company Ltd. (NALCO), Hindustan Copper Ltd. (HCL), and Mineral Exploration Company Ltd. (MECL).
Formation: KABIL was founded in 2019 with the primary objective of sourcing critical minerals like lithium and cobalt from overseas locations.
Ministry Oversight: Under the purview of the Ministry of Mines, KABIL’s equity participation is distributed in the ratio of 40:30:30 among NALCO, HCL, and MECL, respectively.

Strategic Mineral Security: KABIL’s core mission is to ensure India’s mineral security and achieve self-reliance in critical and strategic minerals. It identifies and acquires overseas mineral assets like lithium and cobalt.
Functions: KABIL conducts the identification, acquisition, exploration, development, mining, and processing of strategic minerals abroad to meet the country’s commercial requirements.
Exploration: It explores various avenues for sourcing minerals, including trading opportunities, governmental collaborations, strategic acquisitions, and investments in exploration and mining assets.
Global Partnerships: KABIL fosters partnerships with mineral-rich countries worldwide, such as Australia, Africa, and South America, leveraging India’s expertise in exploration and mineral processing to create mutually beneficial economic opportunities.

Argentina’s Lithium Resources: Argentina, along with Chile and Bolivia, forms the world’s “Lithium Triangle,” collectively possessing over half of the world’s lithium resources. Argentina stands out with its second-largest lithium resources, third-largest lithium reserves, and fourth-largest production globally.
Block Acquisition: KABIL, a state-owned entity, has acquired Exploration and Exclusivity Rights for five lithium brine blocks in Argentina.
Branch Office in Argentina: KABIL is gearing up to establish a branch office in Catamarca, Argentina, further emphasizing its commitment to the project.

Strategic Significance: This groundbreaking endeavour holds paramount importance for India’s transition towards green energy solutions. Lithium, often referred to as ‘white gold,’ is integral for various applications, including energy storage solutions, mobile phone batteries, and electric vehicles (EVs).
Reducing Import Dependency: India’s lithium requirements, valued at around ₹24,000 crore, are primarily met through imports, with a significant portion originating from China.
Unlocking Technical Expertise: The Union Minister for Mines, highlights that this initiative not only addresses India’s lithium sourcing needs but also brings valuable technical and operational experience in brine-type lithium exploration, exploitation, and extraction.

India’s acquisition of lithium blocks in Argentina through KABIL represents a monumental stride towards securing its strategic mineral supply.
This initiative not only strengthens India’s position in the global lithium market but also aligns with its commitment to sustainable and self-reliant energy solutions.