Lithium Diplomacy: Strengthening India–Argentina Strategic Relations In A Multipolar World

Policy Update
Kavin Adithya C.B.

Background

The paradigm shift towards sustainable energy sources and electric mobility has significantly increased the significance of several natural resources. Hydrocarbons, in particular oil and natural gas, were at the centre of geopolitical confrontations during the twentieth century. However, the rising awareness of the environmental impact of fossil fuels and the shift towards alternative energy sources have prompted countries to focus on critical minerals. One such mineral is lithium, an essential constituent in batteries and various electronic devices. The need for alternative energy and zero-emission transportation modes has become acutely relevant globally. Lithium is a strategic resource that several nations seek to secure for themselves to reduce their carbon footprint and meet their net-zero obligations.

India aspires to emerge as a global leader in the sustainable energy transition while ensuring its energy security. While lithium reserves were discovered in Jammu and Kashmir and other states, India currently faces challenges in fulfilling its lithium needs. Although lithium can be found in abundance in certain states, the country has a heavy reliance on imports to satisfy its insatiable demands. On the other hand, the Government of India (GoI) has demonstrated strong political will to safeguard its interests in natural resources. A company named Khanij Bidesh India Limited (KABIL) was established in 2019 under the Ministry of Mines by the National Aluminium Company Limited, Hindustan Copper Limited, and Mineral Exploration and Consultancy Limited.

 As a new entity created by the government, KABIL’s primary mission is to explore and invest in critical mineral deposits abroad. It is only natural that India will pursue lithium from Argentina to diversify its supply routes and reduce its reliance on a single supplier. The South American country possesses a vast Lithium Triangle that spans across Argentina, Chile, and Bolivia. The region contains more than fifty percent (50%) of the world’s lithium reserves. The diplomatic and commercial ties between India and Argentina are poised to strengthen as the Republic of Argentina emerges as a reliable strategic partner for India in securing natural resources.

Table 1. India’s Lithium Diplomacy Framework

Functioning

While the Union Ministry of Mines is responsible for policy oversight, the Mines Department and Khanij Bidesh India Limited (KABIL) are the two key pillars of India’s lithium policy in Argentina. KABIL was mandated to explore and procure critical minerals on behalf of the Union Government. It is a joint venture of National Aluminium Company Limited (NALCO), Hindustan Copper Limited (HCL), and Mineral Exploration and Consultancy Limited (MECL). Thus, India is ready to benefit from direct equity participation in mining while also engaging in commercial partnerships.

A particular feature of Argentina as a country is that, unlike other South American countries in which mining concessions belong to the state, Argentina’s natural resources belong to its provinces. India’s lithium diplomacy with Argentina can be seen through the prism of the policy and commercial aspects of exploration, procurement, and development of critical minerals. In this vein, India’s engagement with Argentina is focused on CAMYEN SE (Catamarca Minera y Energética Sociedad del Estado), the mining company of the province of Catamarca. Thus, according to the agreement, KABIL has signed an exploration and development contract with CAMYEN SE for the right to explore five lithium-rich brine fields of 15,703 ha in Catamarca.

KABIL has established an office in Catamarca to facilitate day-to-day operations and coordination, conduct technical meetings, and carry out fieldwork to characterise the area’s hydrology and geology to start the mining process. The activities include geological-hydrological, geo-physical, and drill-core logging surveys and laboratory tests to determine lithium content in the five fields.Notably, this project fits into India’s broader strategic vision and mission regarding critical minerals.

Thus, the lithium that will be mined in Argentina will go towards fulfilling India’s needs for the PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage. Apart from the strategic and policy dimensions, another layer of this project is technological collaboration and partnerships between the two countries, including people-to-people contacts. Therefore, India’s lithium diplomacy has an essential geopolitical dimension that builds on long-standing partnerships and positions the country to meet its critical mineral needs.

Performance 

Since January 2024, India’s lithium diplomacy has demonstrated steady institutional and operational progress rather than immediate commercial outcomes.

The gradual progress in exploration activities proves that New Delhi pursues an active policy of reducing the country’s lithium dependence on other states. India has made a lot of efforts to ensure that the exploration activities take place successfully. However, the country has not focused on obtaining any immediate benefits from Argentina; instead, it is trying to secure long-run supplies of lithium and other minerals.

First of all, the most important indicator of India’s lithium diplomacy in Argentina in 2024 is that the involvement of KABIL in the exploration process has started to yield results. Having established its branch office in Catamarca, KABIL officials can make the process of exploring mineral resources more transparent and manageable. It is possible now to control the process directly instead of relying on the previous indirect cooperation mode. Second, field activities have started to study the features of every block, including hydrological, geological, and geophysical characteristics, and trial drilling for lithium has begun.

At the same time, KABIL researchers try to assess the impact of mining on the local environment because Argentina has strict legal policies concerning environmental protection and sustainable development of natural resources. Undoubtedly, these pilot activities are of great importance for the future of mining in Argentina. However, it is difficult to say how soon India will start reaping economic benefits from the engagement.

Third, collaboration between India and Argentina has gone beyond the framework of KABIL, as MECL and the Government of Catamarca have started exploring mineral resources together. The two sides have agreed to cooperate to share their expertise and knowledge about mining activities and mineral assessment. In addition, India and Argentina are exploring the possibility of using innovative methods such as Direct Lithium Extraction, which can significantly increase the efficiency of mining.

India–Argentina Lithium Partnership

(2024–2026)

Impact

India’s lithium partnership with Argentina is an important step towards not only obtaining one mineral, but rather establishing strategic reserves while also limiting the impact of outside factors on its own.Through KABIL’s partnership with CAMYEN SE, India has secured access to overseas lithium exploration assets, enabling diversification of its critical mineral sources. The benefits of this partnership go beyond just one material, as it allows them to secure their own future while also engaging in diplomatic efforts with other countries on the world stage.

One of the major advantages of India’s lithium deal goes back to strategic autonomy. 

The country continues to rely significantly on imported lithium compounds and battery materials, which is why it has taken this step to further reduce their dependence on their imports. The mineral is incredibly important, powering not just India but an increasing number of countries around the world in their own transitions to net-zero. Having a reliable source of materials ensures that their own transition continues unhindered, even in the midst of political unrest. This also ties into another benefit ,the country is able to secure its own critical mineral supply chain, which is vital if it wishes to reduce its own strategic dependence on other nations and become self-sufficient.

Besides strategic autonomy, another major benefit of India’s lithium investment ties into its domestic policies. Their push to localise their battery manufacturing and storage means they require a stable supply of lithium reserves, which the PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage hopes to utilise in its attempt to manufacture lithium-ion cells. Having a steady supply of materials will be vital in enabling India to fulfill its potential as a regional leader when it comes to clean energy, further bolstering their position within the global economy while also ensuring their own reliability.

Additionally, it opens up new diplomatic opportunities between the two nations, positioning them as partners in not just trade but science and technology as well. This also serves to further diversify India’s own import supply chain, further insulating it from manipulation by other countries.

India’s engagement in lithium diplomacy also speaks to the changing economic and geopolitical landscape of the modern world. With many resources being tied to specific nations, it is important that countries such as India reduce their dependence on any given resource or nation by acquiring alternative options. This will allow them to both continue to develop their own economy while also maintaining their independence from external influences. In this light, India’s investment in lithium and Argentina’s resources are important steps towards their own economic growth and diplomatic outreach. This also helps diversify India’s import supply chains and reduce vulnerabilities arising from external disruptions.

Emerging Issues & Challenges

• Increased international competition:India is embroiled in a competitive fight to obtain lithium for its needs. Some countries such as China are already ahead of the game in that they already have a stake in the mining and battery producing business. Therefore, such nations are in a better position compared to those that did not consider the resource critical to its economic needs. As such, India has to contend with other countries and negotiate its way to have a piece of the lithium pie.
• Environmental and social concerns:Lithium is found in salt flats in Argentina, which requires heavy amounts of water to be extracted. Thus, there are potential social and environmental problems in that the local ecology and society would be negatively impacted by the mine. The local community would be deprived of water, and the environment around the mining site would permanently change, affecting the livelihood of the locals.
• Political and policy-related issues:Mines in Argentina are owned by private companies, which are then licensed by the government. As such, any changes to the laws, policies, or guidelines by the government in Argentina can affect the operations of Indian companies, since they would be required to adjust their operations in line with the new requirements. Thus, for India, factors such as tax incentives, policies, or even investment guidelines in Argentina are of great concern to its stakeholders.
• Supply chain development:Although securing an overseas source of lithium is critical to India, it is not enough. In addition, the Indian government needs to develop its domestic lithium processing capabilities to have more control over the supply chain. Processing facilities and battery recycling plants should be developed to reduce reliance on foreign processing plants, as well as the need to depend on other countries to manufacture batteries using the lithium that will be sourced abroad.
• Changing market needs and technology:India has to take into account the changing market needs and how such needs can affect its own corporate and national objectives. The battery market is a volatile one, with technological changes and changes in lithium prices presenting constant challenges to the stakeholders. 

Moreover, technological advances in batteries could make lithium batteries obsolete, and as such, India must consider the need to balance efforts between exploring alternative battery technologies and investing in lithium.

Way forward

• Promotion of sustainable extraction technologies:India should promote the use of Direct Lithium Extraction technology and other similar technologies that reduce water consumption, increase lithium recovery rates, and have less environmental impact. This will help India to meet the requirements for sustainable lithium mining while also reducing environmental damage to the sensitive Argentinian ecosystem

• Bolstering of domestic battery cell value chain:In parallel, India needs to bolster its domestic battery cell value chain through downstream integration and the creation of refineries, processing units, and recycling plants in order to fulfill the requirements of the PLI scheme for Advanced Chemistry Cell Battery Storage.
• Diversification of sources for critical minerals:While Argentina is an important partner, India needs to diversify its sources for critical minerals both in terms of natural resources as well as technological capabilities. This could include partnerships with other mineral rich countries in South America such as Chile, Down Under such as Australia and select countries in Africa.
• Institutional and technological collaborations:India and Argentina need to think beyond mining and build deeper bonds by engaging in collaborative research, geological studies and surveys, technological exchanges, and human capacity development in order to build a stronger foundation for their strategic partnership.
• Enhanced ESG focus and community engagement: India needs to be mindful of ESG compliant practices when investing in Argentina. This includes community engagement, sustainable water management practices, and environment impact assessments.

India’s lithium diplomacy with Argentina marks an important step in securing critical minerals needed for energy transition and economic growth. While India’s economic and strategic engagement with Argentina is still in its infancy, it highlights how New Delhi is recalibrating its foreign policy to advance its economic and strategic interests.

By securing access to lithium reserves in Argentina while also promoting domestic industry development, technology, and innovation, India is positioning itself to benefit from the critical mineral wealth while also reducing its vulnerability to the global supply chain. As great power rivalries unfold, and geopolitical fissures deepen, an enhanced strategic partnership with Argentina can help India to navigate the changing great power dynamics while also securing its strategic autonomy in an increasingly multipolar world.

References

• Centre for Social and Economic Progress. (2023). Securing India’s critical mineral supply chain: Strategic vulnerabilities and policy imperatives. https://csep.org/ 
• Geological Survey of India. (2023). G3 stage mineral exploration report on Salal–Haimana lithium inferred resources, Reasi District, Jammu & Kashmir. Ministry of Mines, Government of India. https://www.gsi.gov.in/ 
• International Energy Agency. (2023). Critical minerals market review 2023: Securing energy transition supply chains.https://www.iea.org/reports/critical-minerals-market-review-2023 

• International Energy Agency. (2024). Global EV outlook 2024: Moving towards low-emission mobility.https://www.iea.org/reports/global-ev-outlook-2024
• Manohar Parrikar Institute for Defence Studies and Analyses. (2024). Resource geopolitics in the Lithium Triangle: Implications for India’s foreign policy. https://idsa.in/
• Ministry of Heavy Industries, Government of India. (2021). Production Linked Incentive (PLI) Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage. https://heavyindustries.gov.in
• Ministry of Mines, Government of India. (2024). Annual Report 2023–2024. https://mines.gov.in/
• Ministry of Mines, Government of India. (2024, January 15). India signs historic agreement for lithium exploration and mining in Argentina (Press Information Bureau Release No. 1996380).https://pib.gov.in/PressReleasePage.aspx?PRID=1996380
• Ministry of Mines, Government of India. (2024). KABIL is exploring opportunities for acquisition of overseas critical minerals assets in Argentina, Australia and Chile (Press Information Bureau Release No. 2039606). https://pib.gov.in/PressReleasePage.aspx?PRID=2039606Ministry of Mines, Government of India. (2025). India and Argentina strengthen cooperation in lithium exploration and mining with a Memorandum of Understanding (Press Information Bureau Release No. 2104761). https://pib.gov.in/PressReleasePage.aspx?PRID=2104761
• United States Geological Survey. (2025). Mineral commodity summaries 2025:Lithium.https://pubs.usgs.gov/periodicals/mcs2025/mcs2025-lithium.pdf
• Vazquez, M., & Vera, S. (2023). Sub-national resource governance in Argentina: Provincial sovereignty under Article 124 and the lithium boom. Journal of Latin American Environmental Policy, 18(2), 112–131.
• World Bank. (2022). Minerals for climate action: The mineral intensity of the clean energy transition.https://www.worldbank.org/en/topic/extractiveindustries/publication/minerals-for-climate-action

About the Contributor: 

Kavin Adithya C.B. is a Research and Editorial Intern at IMPRI (Impact and Policy Research Institute). He is currently pursuing an M.A. in International Relations at Loyola College, Chennai. His academic and research interests include International Relations, International Political Economy, Defence and Security Studies, Public Policy, Geopolitics, and Human Rights. He is passionate about analysing contemporary global affairs and strengthening his research and policy analysis skills through academic writing and public policy engagement.

Acknowledgement: 

The author sincerely expresses gratitude to the reviewers and the editorial team for their valuable comments, constructive suggestions, and continuous guidance throughout the preparation of this article. Their insightful feedback significantly enhanced the clarity, organisation, and analytical quality of the manuscript. The author also acknowledges the support and encouragement received during the research and writing process, which contributed to the successful completion of this work.

Reviewers:  Tanisha and Divya. The author sincerely thanks the reviewers for their valuable time, careful evaluation, and constructive comments. Their insightful suggestions have helped improve the quality, clarity, and overall presentation of this article. He greatly appreciates their thoughtful feedback and the opportunity to revise the manuscript accordingly.

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.

Read More at IMPRI:-

Building Independent Lives — Assessing the National Trust’s DISHA – Early Intervention and School Readiness Scheme for Cognitive and Developmental Disabilities (2015)

The Smart City Mission in Srinagar and Jammu 2017: A Comparative Assessment of Urban Transformation