Prime Minister Narendra Modi's ground breaking bilateral visit to Argentina on July 5-6, 2025, marked a watershed moment in India's quest for critical mineral security, particularly lithium, as both nations deepened their strategic partnership across multiple sectors. This historic visit—the first by an Indian Prime Minister to Argentina in 57 years—has resulted in significant agreements that position India as a key player in Argentina's lithium-rich landscape within the globally significant "Lithium Triangle."

Strategic Lithium Partnerships Take Center Stage

During the high-level discussions between Prime Minister Modi and Argentine President Javier Milei, critical mineral cooperation emerged as a cornerstone of bilateral relations. MEA Secretary (East) P. Kumaran emphasized that "Argentina is a part of the lithium triangle. It is of great interest to us". The strategic importance of this partnership cannot be overstated, as Argentina holds approximately 22 million metric tons of lithium reserves, making it the world's second-largest holder of lithium resources after Bolivia, accounting for around 20-21% of global lithium reserves.

India's lithium engagement in Argentina has already gained substantial momentum through multiple public and private sector initiatives. Two major Indian public sector companies—Coal India Limited and Khanij Bidesh India Limited (KABIL)—have signed five concession agreements and are working on finalizing investments to produce, refine, and export lithium minerals. These agreements represent India's first-ever lithium exploration and mining projects undertaken by government companies, marking a significant milestone in the country's critical mineral security strategy.

KABIL's Pioneering Lithium Operations

The most significant development in India's lithium strategy came through KABIL's landmark agreement with Argentina's state-owned enterprise CAMYEN (Catamarca Minera Y Energética Sociedad Del Estado) in January 2024. This agreement grants KABIL exploration and exploitation rights for five lithium brine blocks—Cortadera-I, Cortadera-VII, Cortadera-VIII, Cateo-2022-01810132, and Cortadera-VI—covering approximately 15,703 hectares in Argentina's Catamarca province. The project involves an investment of approximately 200 crores (US$24 million) and represents a strategic move to secure India's lithium supply chain for its ambitious clean energy transition.

KABIL commenced exploration activities at these lithium blocks on October 4, 2024, with geological mapping and sampling activities near Fiambalá in the Tinogasta department of Catamarca Province. The company has also established a branch office in Catamarca, demonstrating its long-term commitment to the region. This initiative is particularly significant as it provides India with technical and operational experience in brine-type lithium exploration, exploitation, and extraction—crucial expertise for India's domestic lithium development programs.

Private Sector Participation And Investment

Beyond government initiatives, Indian private sector companies have also made substantial investments in Argentina's lithium sector. Two notable companies—Greenco from India and World Metal Alloys, an Indian-owned company based in the UAE—have secured lithium concessions in Argentina. These private sector investments complement the government's strategic approach, creating a comprehensive framework for India's lithium security.

The involvement of private companies demonstrates the commercial viability and strategic importance of Argentina's lithium resources. Greenco has entered into a prospecting contract with CAMYEN for 8,000 hectares in the northern area of Antofagasta de la Sierra, while World Metal Alloys has secured collaboration and exploration rights for 7,500 hectares in the Campo Blanco area. These agreements collectively represent nearly one million hectares of lithium-rich salt flats under various forms of Indian control or partnership.

Coal India's Expanding Lithium Strategy

Coal India Limited, India's largest coal producer, has significantly expanded its lithium acquisition strategy in Argentina. The company has been actively exploring opportunities to acquire lithium brine assets and has even considered a 50:50 joint venture with Argentina's state-majority energy company YPF. This partnership would focus on exploring, mining, and commercially utilizing lithium resources, marking Coal India's strategic diversification from its traditional coal operations.

The company has invited expressions of interest from experienced consultants to conduct technical due diligence on lithium brine assets in Argentina, demonstrating its serious commitment to the sector. Coal India's involvement is particularly significant as it represents the second Indian public sector unit to enter Argentina's lithium sector, following KABIL's pioneering efforts.

The Lithium Triangle: Geographic And Strategic Significance

Argentina's position within the "Lithium Triangle"—a region encompassing Argentina, Bolivia, and Chile—makes it a crucial strategic partner for India's energy transition. This geographical region, located in the Andes Mountains, contains approximately 54-58% of the world's lithium reserves and is characterized by unique geological conditions that concentrate lithium in salt flats (salares). The triangle encompasses about 150 internal drainage basins covering approximately 400,000 square kilometers, with Argentina's lithium resources primarily concentrated in the provinces of Catamarca, Jujuy, and Salta.

The strategic importance of the Lithium Triangle has been recognized globally, with lithium often referred to as "white gold" due to its critical role in battery technology for electric vehicles, mobile phones, laptops, and renewable energy storage systems. Argentina's lithium production is projected to increase dramatically, with the country expecting to produce 130,800 tonnes of lithium carbonate equivalent in 2025—a 75% increase from 2024.

Energy Security And Industrial Cooperation

The lithium agreements are part of a broader energy cooperation framework between India and Argentina. During the bilateral discussions, Prime Minister Modi emphasized India's growing energy and industrial needs, highlighting Argentina's potential as a "reliable partner" in supporting India's developmental journey. Argentina's energy profile is particularly attractive to India, as the country holds the world's second-largest shale gas reserves and fourth-largest shale oil reserves, alongside substantial conventional oil and gas deposits.

The energy cooperation extends beyond lithium to include potential partnerships in liquefied natural gas (LNG) projects. Argentina is developing the Argentina LNG project to explore the untapped Vaca Muerta shale formation, with plans to boost LNG exports to 30 million tons per year by 2030. This presents significant opportunities for India to diversify its energy supply sources and reduce dependence on traditional suppliers.

Bilateral Trade And Economic Partnership

The lithium deals are embedded within a broader framework of expanding bilateral trade relations. India-Argentina bilateral trade reached USD 5.23 billion in 2024, representing a 33% increase from the previous year, making India Argentina's fifth-largest trading partner. The trade relationship has shown remarkable resilience, with trade in the first quadrimester of 2025 registering an impressive 53.9% growth, valued at USD 2.055 billion.

Argentina serves as one of India's primary suppliers of vegetable oils, particularly soybean and sunflower oil, while India exports petroleum products, agrochemicals, textiles, organic chemicals, and pharmaceuticals to Argentina. The lithium partnership is expected to significantly enhance this trade relationship, creating new opportunities for technological cooperation and industrial development.

Regulatory And Investment Framework

The success of India's lithium ventures in Argentina is facilitated by favourable regulatory frameworks and investment incentives. Argentina introduced the "Régimen de Incentivo para Grandes Inversiones (RIGI)" in 2024, providing significant incentives for large-scale investments exceeding USD 200 million. This regime offers benefits including VAT and income tax advantages, exemptions from import and export duties, fiscal stability, and free availability of foreign currency.

The regulatory environment is particularly conducive to foreign investment, with no restrictions on foreign ownership of companies engaged in mineral exploration and extraction. This policy framework has attracted significant international investment in Argentina's lithium sector, with the country becoming increasingly important in global lithium supply chains.

Environmental And Social Considerations

The lithium extraction projects in Argentina operate within a complex environmental and social context. The salt flats where lithium is extracted are also critical ecosystems that support local communities and wildlife. Indian companies, particularly KABIL, have committed to operating according to international responsible mining standards, including IRMA guidelines, which encompass environmental, social, and governance aspects.

The projects face scrutiny from local communities and environmental groups concerned about water usage and ecosystem impact. However, companies like Sales de Jujuy have demonstrated positive engagement with local communities, with 65% of employees coming from indigenous communities and providing above-average salaries and community benefits.

Conclusion

Prime Minister Modi's historic visit to Argentina has successfully established India as a major stakeholder in the global lithium supply chain through strategic partnerships in the Lithium Triangle. The comprehensive agreements involving both public and private sector entities, combined with broader energy cooperation frameworks, demonstrate India's commitment to securing critical mineral resources for its clean energy transition. These partnerships not only enhance India's energy security but also strengthen diplomatic ties with a key South American partner, positioning both nations for sustainable economic growth in the emerging clean energy economy.

The lithium deals represent a paradigm shift in India's approach to resource security, moving from import dependence to strategic partnerships that ensure long-term supply stability. As both nations continue to implement these agreements, the India-Argentina lithium partnership is poised to become a model for South-South cooperation in the critical minerals sector, contributing to global efforts to accelerate the clean energy transition while ensuring equitable and sustainable development.

IDN