The Mines Ministry is expected to complete due diligence across lithium blocks in the Latin American nation of Argentina in two months.

The due diligence would help officials determine the prospective reserve available, while a call on the nature of partnership — that includes stake pick-up, strategic buy, or long-term lease, among others — is yet to be decided upon, Ministry officials told businessline.

A team comprising one geologist each from Mineral Exploration Corporation Ltd. (MECL), KABIL (Khanij Bidesh India Ltd.), and the Geological Survey of India (GSI) had been to the Argentinian province of Catamarca earlier this fiscal.

An MoU with the Argentinan government had been signed earlier.

The KABIL, a JV company formed through the participation of three central public sector enterprises, namely, the National Aluminium Company (NALCO), Hindustan Copper (HCL), and MECL, in order to ensure consistent supply of critical and strategic minerals to the domestic market, is carrying out the due diligence.

“In another two-odd months, there will be a much clearer picture of the reserves that we are looking at and our plans surrounding the mines,” the official said.

Apart from Australia, other major lithium producers globally include Bolivia, Argentina, Chile, the US, and China.

Indian Imports

Lithium, an alkali metal, is one of the key components in rechargeable batteries that find usage in mobiles, laptops, electric vehicles, and medical devices like pacemakers. It is also used in energy storage solutions.

India currently imports all the major components that go into lithium-ion cell manufacturing.

As per a reply in the Rajya Sabha by Prahlad Joshi, India’s lithium ion import bill (which covers electric accumulators, including separators) stood at ₹18,554.12 crore in the April–January period of this fiscal, with nearly 76 per cent of these coming from China.

On the other hand, lithium imports (covering primary cells and batteries) stood at around ₹209 crore for the 10-month period of this period, with China and Hong Kong being the top two countries at 30 per cent and 25 per cent, respectively.

In FY22, the imports of lithium ion were ₹13,673.15 crore, while those of lithium were ₹165.08 crore.

J&K reserves

Meanwhile, in Jammu and Kashmir, where lithium reserves have been found and auctions are planned around the June-July, the ministry has received queries from Korean and Japanese mining companies.

Auctions will be carried out by the State government, and composite licences are likely to be issued.

Ministry officials said 100 per cent FDI is already allowed in mining, and foreign companies interested in taking part will have to do so through an Indian arm or subsidiary.

As per policy, Chinese companies are unlikely to be a part of the auction process.

“Any country that shares a land border with India needs security clearances for strategic reasons,” an official said.

The inferred reserves (lithium) in J&K is pegged at 5.9 million tonnes.

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