Why in News?

• India is on the brink of securing a significant deal for five lithium blocks in Argentina, with negotiations reportedly in the final stages.
• This strategic move could be a game-changer in reducing India's reliance on China for critical minerals.

What’s in Today’s Article?

• About Lithium (Properties, Applications, Availability, Top Producers, etc.)
• News Summary

About Lithium:

• Lithium is a chemical element with the symbol Li and atomic number 3. It is a soft, silvery-white alkali metal.
• Lithium is a special metal in many ways. It's light and soft — it can be cut with a kitchen knife and so low in density that it floats on water.

Applications of Lithium:

• The most important use of lithium is in rechargeable batteries for mobile phones, laptops, digital cameras and electric vehicles (EVs).
  • Lithium is often dubbed as “white gold” for electric vehicles.
• Lithium metal is made into alloys with aluminium and magnesium, improving their strength and making them lighter.
  • Aluminium-lithium alloys are used in aircraft, bicycle frames and high-speed trains.
• Lithium has no known biological role. It is toxic, except in very small doses.

Where is Lithium Found Naturally?

• Lithium makes up a mere 0.0007 per cent of the Earth's crust and it's only found locked up in minerals and salts.
• With 9.3 million tonnes, Chile has the world’s largest known lithium reserves.
• Chile is followed by Australia (6.2 million tonnes).
• In 2023, the Geological Survey of India, found that 9 million tonnes have been found in Salal-Haimana area of Reasi district of J&K.
  • India now has the third largest resource of lithium globally, but it will take time to convert it to reserves.
• India is followed by Argentina (2.7 million tonnes) and China (2 million tonnes).
• Global lithium production surpassed 100,000 tonnes for the first time in 2021, quadrupling from 2010. Currently, Australia alone produces 52% of the world’s lithium.

Future of Lithium Production:

• As the world produces more batteries and EVs, the demand for lithium is projected to reach 1.5 million tonnes of lithium carbonate equivalent (LCE) by 2025 and over 3 million tonnes by 2030.
• Based on the above demand projections, production needs to triple by 2025 and increase nearly six-fold by 2030. 

News Summary:

• The Union Ministry of Mines, through the state-owned Khanij Bidesh India Ltd (KABIL), has entered into a draft exploration and development agreement with Argentinean miner CAMYEN.
• This agreement is for possible acquisition and development of five-odd lithium blocks.
• The company has also entered into a non-disclosure agreement with Chilean miner ENAMI for “possible exploration, extraction, processing and commercialisation” of the mineral.
• It has also appointed consultancy major PwC for identification of investable projects in Australia.

Acquisitions in Argentina:

• India has over the last one year upped its search for critical mineral, especially lithium.
• Lithium is a cornerstone in India’s switch to green energy thereby reducing its carbon footprints.
• Argentina, with its enormous lithium deposits and low production costs, is ideally positioned to supply this demand.
• As of September 2023, Argentina has two active lithium mines. There are 14 lithium projects under construction or in the advanced exploration stage in Argentina.
  • Argentina is expected to become one of the world’s leading lithium producers once these projects become operational.
• The KABIL board had approved the ‘Draft Exploration and Development Agreement” earlier and a proposal for opening of Branch Office in Catamarca, Argentina was subsequently cleared by the Ministry.