Coal India Ltd, India’s state-run mining giant, has embarked on a strategic exploration initiative in Argentina to secure lithium resources in collaboration with a U.S. company. This move is part of India’s participation in the U.S.-led Minerals Security Partnership (MSP), aimed at bolstering critical minerals supplies essential for achieving zero-carbon goals.
Sources familiar with the matter revealed that Coal India is actively pursuing the Kachi lithium block in Argentina, alongside interests from a U.S. firm and other international partners. The project is a significant step towards diversifying India’s lithium sourcing away from traditional suppliers, particularly China, which currently dominates the global lithium market. “In line with India’s membership in the MSP, Coal India’s involvement in the Kachi block underscores our commitment to securing strategic minerals critical for future technologies,” shared an anonymous source closely involved in the discussions.
Earlier engagements between India and the United States highlighted joint investments in lithium resources in South America and rare earths deposits in Africa. These collaborations are pivotal as they aim to strengthen global supply chains for critical minerals, reducing dependency on single-source markets. “India has identified multiple critical minerals projects under the MSP, with a focus on securing sustainable and diversified supplies,” the source added. Apart from Argentina, India’s state-owned IREL (India) Ltd is actively exploring rare earths in Malawi’s Kangankunde block, further enhancing India’s footprint in global mineral exploration. The Indian government’s proactive stance also extends to exploring critical minerals in Australia’s Dubbo region, underscoring efforts to establish robust supply networks across continents.
Furthermore, discussions between India and the U.S. have progressed towards a bilateral Critical Minerals Memorandum of Understanding (MoU), aimed at facilitating trade and investment in minerals without tariff barriers. This move mirrors existing agreements between the U.S. and Japan, which have facilitated broader market access for Japanese automakers. “While negotiations for a comprehensive MoU are ongoing, both countries are committed to enhancing strategic cooperation in critical minerals,” the source elaborated. As global demand for lithium and other critical minerals intensifies with the transition towards cleaner energy and advanced technologies, India’s proactive steps through partnerships and strategic investments are poised to strengthen its position in the global minerals landscape. These initiatives not only support India’s sustainable development goals but also contribute to global efforts in achieving climate resilience and resource security.
