Partnership Opportunities in the Lithium Value Chain between India and Chile

April 5, 2023

Lithium has become an essential component of modern technology, powering everything from smartphones to electric vehicles. As the world seeks to reduce its carbon footprint, the demand for lithium has skyrocketed, with countries vying for a slice of the lucrative market. Chile is currently looking to partner with India to tap into the potential of lithium value chain.

Chile: The World’s Largest Lithium Producer

Chile is the world’s largest producer of lithium, accounting for nearly 48% of the world’s total lithium reserves. The country’s vast reserves are located in the Salar de Atacama, a large salt flat located in Chile’s north. The lithium is extracted from the brines that lie beneath the salt flats and processed into battery-grade lithium.

SQM: The Second-Largest Global Lithium Producer

Sociedad Química y Minera de Chile (SQM) is the second-largest global lithium producer and has expertise in extracting lithium from mineral form. In 2018, SQM signed a joint venture with Kidman Resources to produce battery-grade lithium in Australia. The joint venture, called Covalent Lithium, is expected to produce 44,000 tonnes of lithium hydroxide per year.

India’s Inferred Lithium Reserves in Reasi District

India has significant inferred lithium reserves in the Reasi district, located in the northern state of Jammu and Kashmir. The area is estimated to have 5.9 million tonnes of lithium in mineral form. The Geological Survey of India (GSI) carried out a mineral exploration project in the Salal-Haimna areas, which led to the discovery of these reserves.

India’s Efforts to Reduce Dependence on Chinese Imports

India is looking to reduce its dependence on Chinese imports, which includes both the raw material and cells for lithium-ion batteries. The government has launched a series of initiatives to encourage the domestic production of lithium-ion batteries, including the formation of Khanij Bidesh India Limited (KABIL), a joint venture company formed by central utilities to source strategic minerals.

Proposed India-Chile Partnership for Tapping into Lithium Value Chain

Chile is currently considering a partnership with India to tap into the lithium value chain. It is also considering the possibility of sharing its expertise on lithium mining specialists and is open to transfer technology for the exploitation of the metal.

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