Coal India Explores Lithium Assets In Argentina In Collaboration With US Firm: Report

On Monday, India and the United States announced joint investments in a lithium resource project in South America and a rare earth deposit in Africa, aiming to diversify critical mineral supply chains

Coal India Ltd, a state-owned entity, is reportedly investigating lithium blocks in Argentina in collaboration with a US company to secure battery material supplies, according to a report by the news agency Reuters citing sources. These initiatives are driven by India's participation in the US-led Minerals Security Partnership (MSP), which it joined last year. The goal is to secure sufficient mineral supplies to support zero-carbon objectives.

On Monday, India and the United States announced joint investments in a lithium resource project in South America and a rare earth deposit in Africa, aiming to diversify critical mineral supply chains. The news agency previously reported that India has been discussing partnerships with multiple countries, including the US, to develop lithium processing capabilities jointly and reduce dependence on China.

"Coal India has come forward for the Kachi block in Argentina in which a US company and two other countries are interested to explore under the MSP," the source told Reuters, according to the report. Initial investigations are underway, added the report.

In February, during a visit to Argentina, US Secretary of State Antony Blinken mentioned that the US was actively exploring investment opportunities in critical minerals, particularly lithium. 

New Delhi has been invited to participate in 20-25 critical minerals projects under the minerals partnership that India joined last year. According to the report, the Indian government has identified four projects, two of which involve collaboration with the US.

The second project, located in the Kangankunde block in Malawi, is being explored by India's state-owned IREL (India) Ltd for rare earths. Additionally, the Indian government has encouraged miners to explore critical minerals in Australia's Dubbo region, the report added.

Regarding trade relations, India has proposed a critical minerals trade deal with the US that would prohibit tariff imposition by either country. This proposal is similar to an existing pact between the US and Japan, which facilitates Japanese automakers' access to US electric vehicle tax credits, claims the report.

Meanwhile, both countries said on Monday that they are in discussions for a bilateral Critical Minerals Memorandum of Understanding (MoU).