India is ramping up its investment in Argentina’s mining, gas, and oil sectors, with a strong focus on lithium as it seeks to secure key resources for its clean energy transition. The move aligns with India’s broader strategy to ensure stable access to critical minerals, essential for its ambitious push toward electric mobility and renewable energy.
V.L. Kantha Rao, India’s mining secretary, visited Buenos Aires for high-level talks, marking the first in-person meeting between Indian and Argentine officials since the two countries signed a preliminary agreement in 2022. The deal covers mineral exploration, critical mineral supply, and technology development.
Indian companies, both state-owned and private, are already exploring lithium deposits in Argentina. State-run Khanij Bidesh India Ltd and Coal India, along with private firm Greenko, have begun operations in Catamarca, a province in northwest Argentina that borders Chile. Rao indicated that further investments may be on the horizon, suggesting that an official announcement could come within six months. He also highlighted growing interest in other lithium-rich provinces such as Salta.
India’ss Urgency to Secure Lithium
India, one of the world’s largest greenhouse gas emitters, is taking aggressive steps to transition to cleaner energy sources. The government has identified 30 critical minerals, including lithium, as essential for its decarbonization goals. The demand for lithium is particularly pressing as India plans to electrify 30% of its vehicle fleet by 2030.
This push for lithium security reflects a broader trend in which India is turning to resource-rich nations such as Australia, Chile, and Argentina to ensure a steady supply of materials needed for battery production and other renewable energy technologies.
Indian investors are looking for stability and long-term policy predictability in Argentina. The country’s recently introduced Large Investment Incentive Regime (RIGI) is seen as an attractive framework, offering tax benefits for investments exceeding $200 million.
Argentina is the world’s fourth-largest lithium exporter and a key player in the “lithium triangle, an area that also includes Chile and Bolivia. The region contains some of the largest known lithium reserves, making it a crucial supplier for the global battery industry.
The Argentine government, under President Javier Milei, is pushing economic deregulation measures to attract more foreign investment. The country is grappling with high inflation and economic instability, making foreign direct investment an essential pillar for its recovery strategy.
Expanding Energy Cooperation
Beyond lithium, India is also eyeing investments in Argentina’s copper, gold, gas, and oil sectors. The energy partnership between the two nations took a step forward last week when Argentina’s state-controlled oil company, YPF, signed a memorandum of understanding with three Indian firms for potential liquefied natural gas (LNG) exports.
Indian officials will also visit Catamarca and meet with Argentina’s Economy Minister Luis Caputo to discuss further investment opportunities.
As India accelerates its transition to renewable energy and electric vehicles, securing stable supply chains for critical minerals has become a strategic priority. By deepening ties with Argentina, India aims to not only strengthen its energy security but also position itself as a key player in the global clean energy race. Meanwhile, Argentina, struggling with economic uncertainty, views India’s investment as a potential boost to its resource sector and overall financial stability.
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
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