• India signed an MoU with Argentina’s Catamarca province to strengthen lithium exploration and mining, enhancing its access to critical minerals.
  • Amid rising EV demand, India waived basic customs duty on materials for lithium-ion battery production while boosting domestic manufacturing.

India has signed a memorandum of understanding (MoU) with Argentina to enhance collaboration in lithium exploration and mining.

The agreement was signed between Mineral Exploration and Consultancy Limited (MECL), 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.

The MoU is a strategic move as India continues to secure lithium resources to meet the rising demand for lithium-ion batteries, which are essential for electric vehicles (EVs), smartphones, and other electronic applications.

Argentina, a key player in the global lithium market, is part of the 'Lithium Triangle'—a region in South America rich in lithium reserves, spanning Argentina, Bolivia, and Chile.

The agreement comes amid the United States proposal to increase import duties on Chinese lithium-ion batteries from 7.5% to 25%.

This shift has prompted some US companies to seek alternative sources, including India. Earlier this year, Andhra Pradesh-based Munoth Industries reportedly signed an agreement to supply lithium cells to a US power bank manufacturer.

The Indian government has been actively working to establish a stable lithium supply chain.

Besides international collaborations, the Centre has taken steps to boost domestic lithium mining and has waived basic customs duty on materials required for battery production.

Meanwhile, major EV players like Ola Electric have already begun manufacturing lithium-ion batteries in India.

The company has launched Indigenous 4680 cells and is also working on developing solid-state batteries.

However, despite these advancements, India continues to import an estimated 1.5 million lithium cells of 10,000 mAh capacity from China each month for digital applications.

Edited By Annette George