Coal India Investigates Lithium Deposits in Argentina to Ensure Battery Material Supply

State-run Coal India Ltd is exploring lithium blocks in Argentina in collaboration with a U.S. company to secure supplies of this crucial battery material, according to an Indian source with direct knowledge of the matter on Tuesday.

These efforts are part of India's involvement in the U.S.-led Minerals Security Partnership (MSP), which New Delhi joined last year to ensure adequate mineral supplies needed to achieve zero-carbon goals.

On Monday, India and the United States announced their co-investment in a lithium resource project in South America and a rare earths deposit in Africa to diversify critical mineral supply chains. According to a Reuters report, India has been in discussions with several countries, including the U.S., to collaborate on lithium processing and reduce reliance on China.

"Coal India has expressed interest in the Kachi block in Argentina, where a U.S. company and two other countries are also exploring under the Minerals Security Partnership (MSP)," the source said, requesting anonymity due to the sensitive nature of the discussions.

Preliminary studies are currently underway, the source added. In February, U.S. Secretary of State Antony Blinken mentioned during a visit to Argentina that the U.S. was investigating investment opportunities in critical minerals, particularly lithium.

Coal India and India’s federal Ministry of Mines did not immediately respond to Reuters’ requests for comment via email.

As part of the minerals partnership, which India joined last year, New Delhi was invited to participate in 20-25 critical minerals projects. The Indian government has identified four of these projects, with two being in collaboration with the U.S., the source said.