State-owned Khanij Bidesh India Limited (KABIL) has received environmental clearance from Argentina for deep exploration of five brine lithium blocks. The approval will allow borehole drilling, surveys and exploratory work to assess the volume of lithium available for extraction. The development is for India’s effort to secure critical mineral supplies for batteries, electric vehicles and energy storage.
KABIL’s Lithium Project in Argentina
KABIL had signed an exploration and development agreement with a state-owned enterprise of Catamarca province in Argentina. The project aims to support India’s access to lithium resources and build cooperation in lithium mining and downstream sectors. Production from the blocks is expected to begin in 2029.
Importance of Lithium for India
Lithium is a key raw material for battery manufacturing. It is essential for:
- Electric vehicle batteries.
- Grid and storage batteries.
- Portable electronic devices.
India is seeking stable overseas supplies as domestic reserves are limited and demand is rising rapidly.
Critical Minerals Processing Scheme
India is also working on a scheme for processing critical minerals. The scheme is in an advanced stage of finalisation. Officials said the absence of a domestic processing value chain has limited India’s ability to import and use lithium efficiently. The proposed scheme is expected to strengthen the battery ecosystem and improve supply resilience.
India’s Wider Global Mineral Strategy
India is exploring investment opportunities in lithium projects in Brazil, Canada and Australia as part of a broader strategy to diversify supply sources. The focus is on securing access to critical minerals, developing processing capacity and reducing dependence on external supply chains.
Last Modified: April 27, 2026