Daily Current Affairs : 2-December-2023
India’s recent pursuit of lithium blocks in Argentina marks a crucial step in diversifying its sources of critical minerals. This strategic move holds the potential to significantly reduce India’s dependency on China for essential resources, presenting a game-changing development in the country’s resource security.
Key Developments in India’s Lithium Exploration:
Draft Agreement with CAMYEN:
- The Union Ministry of Mines, through Khanij Bidesh India Ltd (KABIL), is in the process of finalizing an exploration and development agreement with Argentinean miner CAMYEN for potential acquisition and development of five lithium blocks.
Non-disclosure Agreement with ENAMI:
- KABIL has entered a non-disclosure agreement with Chilean miner ENAMI, exploring possibilities for “exploration, extraction, processing, and commercialization” of lithium.
PwC Consultancy for Australian Projects:
- KABIL has appointed PwC to identify investable lithium projects in Australia, adding another dimension to India’s lithium exploration strategy.
India’s Lithium Acquisitions in Argentina:
- Over the past year, India has intensified its pursuit of critical minerals, particularly lithium, crucial for the country’s shift towards green energy and efforts to reduce carbon footprints.
- Argentina, known for its extensive lithium deposits and cost-effective production, emerges as a key source to fulfill India’s increasing demand for this vital mineral.
Argentina’s Lithium Industry:
- Argentina currently boasts two active lithium mines, with 14 projects under construction or in advanced exploration stages as of September 2023.
- The country is poised to become a leading lithium producer globally once these projects are operational.
KABIL Board Approval and Branch Office Proposal:
- The KABIL board has sanctioned the ‘Draft Exploration and Development Agreement.’
- The Ministry has greenlit a proposal to establish a Branch Office in Catamarca, Argentina, indicating a significant stride in India’s lithium acquisition ventures.
Overview of Lithium:
Chemical Properties:
- Lithium, denoted by the symbol Li and atomic number 3, is a soft, silvery-white alkali metal.
Special Characteristics:
- Distinguished by its lightness and softness, allowing it to be cut with a kitchen knife.
- Remarkably low density, enabling it to float on water.
Applications of Lithium:
- Extensively utilized in rechargeable batteries for mobile phones, laptops, digital cameras, and electric vehicles (EVs).
- Often referred to as “white gold” in the context of EVs.
- Lithium metal is alloyed with aluminum and magnesium, enhancing strength and reducing weight.
Toxicity:
- No known biological role, and toxic in larger doses.
Natural Occurrence of Lithium:
- Lithium constitutes 0.0007% of the Earth’s crust, primarily found in minerals and salts.
Global Reserves:
- Chile holds the world’s largest known lithium reserves.
- Australia follows with substantial reserves.
Indian Lithium Reserves:
- Identified in the Salal-Haimana area of Reasi district, J&K, ranking India as the third-largest lithium resource globally.
Global Ranking:
- Argentina and China follow India in lithium reserves.
Production Statistics:
- Global lithium production surpassed 100,000 tonnes in 2021, with Australia contributing 52%.
- India’s lithium production requirements and global projections indicate a significant surge.
Important Points:
Key Developments in India’s Lithium Exploration:
- Draft exploration agreement with CAMYEN for five lithium blocks.
- Non-disclosure agreement with ENAMI for lithium exploration and commercialization.
- PwC consultancy for identifying investable lithium projects in Australia.
India’s Lithium Acquisitions in Argentina:
- Intensified pursuit of critical minerals, especially lithium, over the past year.
- Argentina’s lithium deposits crucial for India’s green energy shift.
Argentina’s Lithium Industry:
- Two active lithium mines in Argentina; 14 projects under construction.
- Argentina poised to become a leading global lithium producer.
KABIL Board Approval and Branch Office Proposal:
- KABIL board sanctions ‘Draft Exploration and Development Agreement.’
- Proposal approved to establish a Branch Office in Catamarca, Argentina.
Overview of Lithium:
- Chemical element Li, atomic number 3; soft, silvery-white alkali metal.
- Lithium known for lightness, softness, and remarkable low density.
- Applications in rechargeable batteries, alloyed with aluminum and magnesium.
- No known biological role; toxic in larger doses.
Natural Occurrence and Reserves:
- Lithium constitutes 0.0007% of Earth’s crust; found in minerals and salts.
- Chile holds the world’s largest lithium reserves; Australia follows.
- India identified as the third-largest lithium resource globally.
Global Ranking and Production Statistics:
- Argentina and China follow India in lithium reserves.
- Global lithium production surpassed 100,000 tonnes in 2021.
- Australia contributes 52%; India’s lithium production requirements set to surge.
Why In News
India is on the verge of finalizing a crucial agreement for five lithium blocks in Argentina, marking a pivotal step in diversifying its sources of critical minerals. This strategic move holds the potential to significantly diminish India’s dependency on China for essential resources, presenting a game-changing development in the country’s resource security. As India broadens its global partnerships, the agreement also underscores its commitment to sustainable resource management and international cooperation.
MCQs about India’s Lithium Diplomacy
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What is the primary motivation behind India’s pursuit of lithium blocks in Argentina?
A. Economic expansion
B. Energy security
C. Environmental conservation
D. Technological innovation
-
Which consultancy firm has been appointed by KABIL to identify investable lithium projects in Australia?
A. McKinsey & Company
B. Ernst & Young (EY)
C. Deloitte
D. PwC (PricewaterhouseCoopers)
-
What is the significance of Argentina in India’s lithium acquisition strategy?
A. Cost-effective production
B. Technological expertise
C. Abundant workforce
D. Proximity to India
-
In terms of lithium reserves, which country holds the world’s largest known reserves?
A. Australia
B. India
C. Chile
D. China
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