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India is expanding its lithium investment in Argentina’s mining and energy sectors, reinforcing its commitment to securing critical minerals for its clean energy transition. This move highlights India’s urgency in acquiring key raw materials to support its decarbonization efforts and electrification of its transportation sector.
V.L. Kantha Rao, India’s mining secretary, recently led high-level discussions in Buenos Aires, marking a significant step in Indo-Argentine cooperation. These talks build on a 2022 agreement between the two nations covering mineral exploration, technology development, and the supply of critical minerals.
“Argentina is one of the world’s most important sources of lithium, and India’s engagement here is strategic,” said an official familiar with the discussions. Rao’s visit underscores India’s increasing interest in lithium deposits, particularly in the provinces of Catamarca and Salta, where state-owned and private firms are already advancing extraction projects.
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India’s Race for Lithium: A Clean Energy Imperative
Lithium has become a cornerstone of India’s clean energy ambitions. As one of the world’s largest greenhouse gas emitters, India is aggressively shifting away from fossil fuels. The government has identified 30 critical minerals—foremost among them, lithium—as essential to achieving its decarbonization targets.
India aims to electrify 30% of its vehicle fleet by 2030, a goal heavily reliant on a stable lithium supply for battery production. Given China’s dominance in the global lithium supply chain, India is actively diversifying its sources, forging partnerships with resource-rich nations such as Australia, Chile, and now Argentina.
State-run Khanij Bidesh India Ltd and Coal India, alongside private-sector player Greenko, have already begun lithium exploration in Catamarca. Rao indicated that further investments are likely, hinting that a formal announcement could be made within six months.
“Lithium security is becoming a geopolitical issue,” said a mining sector analyst. “India’s strategic lithium investment in Argentina shows it is taking no chances in securing the minerals needed for its energy transition.”
Argentina’s Economic Incentives for Foreign Investment
Argentina, the world’s fourth-largest lithium exporter, is actively attracting foreign direct investment to stabilize its struggling economy. As a key player in the “lithium triangle”—which also includes Chile and Bolivia—the country boasts some of the world’s largest lithium reserves.
To entice international capital, the Argentine government has introduced the Large Investment Incentive Regime (RIGI), offering tax breaks for investments exceeding $200 million. Additionally, President Javier Milei’s administration is implementing deregulation measures to enhance investor confidence.
“Argentina needs foreign capital, and India needs lithium—it’s a mutually beneficial relationship,” said an economist tracking Latin American markets. “For Argentina, these investments could provide much-needed financial stability.”
Beyond Lithium: Expanding Energy Cooperation
India’s energy interests in Argentina extend beyond lithium investments. Copper and gold mining projects, as well as oil and gas exploration, are also on India’s radar. Last week, Argentina’s state-controlled oil company, YPF, signed a memorandum of understanding with three Indian firms to explore potential liquefied natural gas (LNG) exports.
Further solidifying bilateral ties, Indian officials are scheduled to visit Catamarca and meet with Argentina’s Economy Minister Luis Caputo to discuss additional energy sector investments.
A Strategic Play for Energy Independence
India’s push into Argentina aligns with its broader strategy of reducing reliance on China for critical minerals. By securing stable lithium supply chains, India aims to strengthen its electric vehicle industry, expand renewable energy projects, and position itself as a major player in the global clean energy race.
Meanwhile, Argentina views India’s investments as a crucial economic lifeline. With inflation soaring and financial uncertainty persisting, foreign capital from India could provide much-needed relief to its resource sector.
As both nations deepen their economic and energy ties, this partnership could play a pivotal role in shaping the future of clean energy in the Global South.
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