Khanij Bidesh India Limited (KABIL) expects to begin lithium production in Argentina within the next four to five years, subject to completion of project feasibility studies. The development is part of India’s broader strategy to secure overseas supplies of lithium and other critical minerals needed for electric vehicles, renewable energy, battery storage and advanced manufacturing.
KABIL Advances Argentina Lithium Projects
KABIL signed an agreement in 2024 to invest around ₹2 billion ($20.92 million) in lithium exploration across five blocks in Argentina. The government of Catamarca province has offered KABIL seven additional greenfield lithium brine blocks under the existing agreement. KABIL is currently evaluating these opportunities, according to the parliamentary panel report. The company is also expanding its engagement with other lithium-rich provinces in Argentina.
Lithium Opportunities in Salta and Jujuy
KABIL is in the process of signing a preliminary agreement with the Ministry of Production and Mining of the Province of Salta and Energy and Mining Resources Salta SA to explore potential collaboration on lithium projects in Salta. In addition, discussions are underway to secure two greenfield lithium brine projects in Jujuy province. KABIL is also evaluating two other projects in partnership with Oil India and Indian Oil Corporation, further expanding its potential lithium portfolio in the region.
Expertise Challenges Delay Lithium Development
While Argentina offers significant opportunities for lithium production, KABIL has identified challenges in developing the projects. The company has flagged delays stemming from a lack of specialised expertise in handling lithium brine deposits. As a result, additional technical capabilities and project evaluation could be required before the projects move towards commercial production. Nevertheless, KABIL expects to progress towards lithium extraction after completing the necessary feasibility assessments.
KABIL Evaluates Lithium Projects in Australia
KABIL is also exploring lithium opportunities beyond Argentina. In Australia, the company, along with Oil India, Coal India and NLC India, is evaluating two lithium projects. The overseas exploration programme forms part of India’s efforts to diversify its sources of critical minerals and establish more secure international supply chains.
India Steps Up Critical Mineral Security
KABIL’s overseas expansion is part of India’s broader effort to secure reliable supplies of critical minerals. Lithium, rare earth elements and other strategic minerals are essential for electric vehicle batteries, energy storage systems, renewable energy technologies, electronics and defence applications. If KABIL successfully advances its Argentina projects, the country could become an important source of lithium for India’s emerging battery and clean energy industries. As reported by msn.com, the company will need to overcome technical, regulatory and geopolitical challenges before these overseas mineral assets can move from exploration to commercial production.
