Coal India Partners with US Company to Explore Lithium Assets in Argentina
Coal India Ltd is partnering with a US company to explore lithium blocks in Argentina, according to an informed Indian source on Tuesday. This initiative is part of India’s involvement in the US-led Minerals Security Partnership (MSP), which the country joined last year to secure a steady supply of minerals essential for achieving zero-carbon goals.
In a collaborative effort, India and the United States announced on Monday their co-investment in a lithium resource project in South America and a rare earths deposit in Africa to diversify their critical minerals supply chains. This move aims to reduce dependency on China by fostering collaboration in lithium processing with several countries, including the US, as previously reported by Reuters.
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“Coal India has shown interest in the Kachi block in Argentina, where a US company and two other nations are keen to explore under the MSP,” the source revealed, requesting anonymity due to the sensitive nature of the discussions. Preliminary studies are currently underway.
In February, US Secretary of State Antony Blinken highlighted the US’s interest in critical mineral investments, especially lithium, during a visit to Argentina.
Neither Coal India nor India’s Ministry of Mines immediately responded to Reuters’ requests for comments.
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Through the MSP, New Delhi was invited to participate in 20-25 critical minerals projects, with four identified by the Indian government, two of which are in collaboration with the US, the source added.
The second project involves the Kangankunde block in Malawi, explored by India’s state-owned IREL (India) Ltd for rare earths. IREL did not respond to a Reuters email seeking comments.
Additionally, the Indian government has instructed miners to explore critical minerals in Australia’s Dubbo region, the source noted.
India has also proposed a critical minerals trade deal with the US, similar to the US-Japan agreement, which would prevent the imposition of tariffs between the two nations. This deal aims to grant wider access to US electric vehicle tax credits for Indian automakers.
Currently, the US and India are negotiating a bilateral critical minerals memorandum of understanding (MoU), both countries confirmed on Monday.
