India Signs MoU With Argentina To Boost Lithium Supply Chain

Amid increasing EV adoption in the country, India has signed a memorandum of understanding (MoU) with Argentina to deepen collaboration in lithium exploration and mining. 

The MoU was signed between Mineral Exploration and Consultancy Limited (MECL), which comes under the mines ministry, and the provincial government of Argentina’s Catamarca. 

“…Key MoU was signed between MECL & the Govt. of Catamarca to enhance India’s access to lithium, a crucial mineral for EVs & renewable energy. Discussions also covered ongoing projects of KABIL’s & Greenko, future lithium ventures & offtake arrangements,” the mines ministry said in a post on X. 

Lithium is a critical mineral used for manufacturing lithium-ion batteries, which find application in EVs, smartphones, among others.

Notably, Argentina is known for its large lithium reserves and falls under ‘Lithium Triangle’, a region in South America which is rich in lithium reserves, encompassed by the borders of Argentina, Bolivia, and Chile. 

The development comes at a time when the US has proposed increasing the import duty on Chinese lithium-ion batteries from 7.5% to 25%.

This led to some US companies looking to source lithium from India. For instance, in January this year, Andhra Pradesh-based Munoth Industries reportedly signed an agreement to supply lithium cells to a US power bank maker.

The MoU is also part of the Indian government’s efforts to secure lithium supply. Besides exploring and mining the mineral in the country, the Centre has also been in talks with multiple other countries for this. 

Amid the increasing demand for lithium-ion batteries, the Centre recently waived basic customs duty on materials required for producing these batteries. 

Notably, EV majors like Ola Electric have already begun manufacturing lithium-ion batteries in the country. Ola Electric has launched indigenous 4680 cells and is developing solid-state batteries. 

However, according to the India Cellular and Electronics Association (ICEA), India is still importing an average of 1.5 Mn lithium-cells of 10,000 mAh capacity from China for use in digital applications every month.

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