India to Explore Lithium in Chile

The Government of Chile announced new opportunities for private sector investors in lithium exploration in March 2024.

1. State-run Coal India (CIL) is considering exploration and extraction of lithium from the salt flats of Chile and has expressed its interest to the Chilean government.

Key Highlights Coal India's Interest:

1. Expression of Interest: CIL has submitted its expression of interest in the request for information (RFI) floated by the Government of Chile for the development of projects for the exploration, extraction, and processing of lithium contained salts or other types of deposits in Chile.
2. Non-Disclosure Agreements: CIL has signed non-disclosure agreements with companies from different countries to check the feasibility of potential investment in critical mineral projects.

Chile’s Lithium Reserves:

1. Global Reserves: Chile is home to half of the viable lithium reserves globally and is the world’s second-largest lithium producer.
2. Global Trade: It accounts for around 36% of the global trade.
3. New Opportunities: The Government of Chile announced new opportunities for private sector investors in lithium exploration in March 2024.
4. Investment Options: Opportunities exist to partner with existing State-owned entities or to make a completely private investment, depending on the salt flat or type of business.

National Lithium Strategy:

1. Request for Information (RFI): Under its National Lithium Strategy, Chile floated the RFI to invite interested domestic and foreign companies.
2. Special Lithium Operation Contracts: The country will offer mining blocks for exploration and extraction of the critical mineral through Special Lithium Operation Contracts.
3. Proposal Launch: The proposal was launched in April 2024, and the bids were opened on July 9, 2024.
4. Interested Companies: Chile’s Economy, Development and Tourism Minister, Nicolás Grau, stated that the government is in touch with 97 companies from 12 countries that have expressed interest in being part of the national lithium industry. The countries include India, China, the US, Singapore, and Germany.
5. Offered Salt Flats: Chile offered around 26 salt flats for the extraction of lithium and received more than 80 proposals. It is not immediately clear whether CIL has secured any winning bids.

Argentina Push:

1. Request for Expression of Interest (EoI): In June 2024, CIL also floated a request for expression of interest (EoI) in Argentina for the empanelment of technical consultants for due diligence of overseas mineral assets.
2. Scope of Work: The empaneled consultants will be invited, as and when projects arise, to submit their financial proposals based on request for proposal (RFP) issued selectively at the sole discretion of CIL to empaneled consultants on a project-to-project basis.
3. Due Diligence: The scope of work includes reviewing all available information regarding the mineral assets, undertaking a site visit to the project areas, and preparing a due diligence report commenting on the various project aspects.

Global Lithium Market:

1. Lithium Reserves: Chile has the world's largest lithium reserves (36%) and is the second-largest global producer (32%). It contributes about 36% to global trade.
2. Lithium Triangle: Chile is a part of the "lithium triangle" along with Argentina and Bolivia.
3. Other Top Producers: Australia, China, and Brazil are other top producers.

Lithium Characteristics and Uses:

1. Versatile Element: Lithium ("white gold") is a versatile element used in rechargeable batteries, ceramics, glass, aluminum alloys, and pharmaceuticals.
2. Properties: It is a soft, silvery white metal, the lightest metal of the periodic table. It has high reactivity, low density, and excellent electrochemical properties.

Lithium Reserves in India:

1. Locations: Lithium reserves in India include Reasi district (J&K), Korba district (Chhattisgarh), Marlagalla area (Mandya district, Karnataka), Koderma (Jharkhand), etc.