Indias state-owned mining company KABIL announced that it has signed a cooperation agreement with an Argentine state-owned enterprise to jointly explore and mine five salt lake brine-type lithium mines in Catamarca Province, Argentina. According to the agreement, India will invest a total of US$24 million. This move aims to strengthen the supply chain of key minerals and reduce dependence on Chinese products.

According to the Times of India on the 15th, this agreement was reached in the context of India joining the US-led Mineral Security Partnership, marking the beginning of Indias pursuit of key mineral resources overseas. Agence France-Presse reported that Indias total lithium imports are currently increasing, reaching US$33 million in the 2022-2023 fiscal year, with more than two-thirds coming from China.

In recent years, the Indian government has introduced a number of industrial policies to support investment and construction in India.Lithium batteryProduction plants to increase the diversification of Indias lithium battery supply chain. In February 2023, India discovered a large lithium mine in the disputed Kashmir region with Pakistan, with a total reserve of 5.9 million tons. KABIL actively seeks to purchase overseas rare metal mining assets, especially after the global lithium price fell sharply in 2023, accelerating contacts with mining companies in Australia, Bolivia and Argentina.

According to the US Consumer News and Business Channel, Argentina has 21% of the worlds proven lithium reserves, far higher than Chiles 11%. Analysts believe that with the stabilization of Argentinas economy, the country is expected to become the new largest lithium resource producer. Currently, Chiles annual lithium production accounts for 26% of the worlds total production, while Argentina only accounts for 6%.

In response to Western countries push to reduce their dependence on China in the field of key minerals, the Chinese Ministry of Foreign Affairs said that China believes that relevant countries should jointly assume the responsibility for the global supply of relevant minerals, ensure the normal development of economic and trade cooperation, and should not politicize, instrumentalize or weaponize the world economy. China will continue to participate in the global division of labor and cooperation in the industry, and maintain a diversified and stable international economic structure and economic and trade relations.

Cooperation with Argentina will not only help India obtain stable lithium resources, but also help ease its dependence on Chinese lithium batteries, while promoting domesticNew EnergyThe development of the industry.