India and Argentina have signed a memorandum of understanding (MoU) to speed up lithium exploration projects, improve resource security, and create new opportunities for Indian businesses in Latin America’s mining sector, the ministry of mines said on Wednesday.

The Mineral Exploration and Consultancy Ltd (MECL), a public sector unit under the ministry of mines, and the provincial government of Catamarca signed the MoU.

India plans to secure lithium supplies for electric vehicle and renewable energy sectors under the partnership.

The agreement was formalized during a meeting between Union minister for coal and mines G. Kishan Reddy and Raúl Alejandro Jalil, governor of Catamarca, along with senior officials from both countries.

“Argentina, known for its vast lithium reserves as part of the ‘Lithium Triangle,’ is a crucial partner for India in securing essential minerals required for EV batteries and renewable energy storage,” the ministry of mines said in a statement.

“The discussions covered ongoing lithium exploration efforts by Khanij Bidesh India Ltd. (KABIL) and Greenko in Catamarca, and the possibilities of increasing participation of Indian companies in mining projects of Argentina,” the ministry added.

Discussions involved possible investment opportunities, long-term supply deals and collaborate on projects to help India secure more lithium.

Why is lithium important for India?

The government’s push for the exploration of critical minerals comes as the global technology race heats up for critical resources in battery, electronics, defense, agriculture, and artificial intelligence (AI) systems.

Lithium is one of the 30 critical minerals for which the ministry of mines has amped up its exploration.

India is working to improve its ability to process lithium, a field which China dominates. To speed up progress, Delhi has sought technical help from Australia, Russia, and the US.

India held its first critical minerals auction in late 2023 to boost local production. At the time it offered 48 blocks for development in 2024. However, only half of them received successful bids.