Argentina’s Foreign Minister Diana Mondino arrives in New Delhi for a pivotal two-day visit starting Oct 7-8, 2024, leading a high-powered delegation of senior officials and 20 business leaders. The discussions will focus on Argentina’s vital role in India’s food and energy security, along with the increasing importance of lithium in bilateral trade. With meetings scheduled with Foreign Minister S Jaishankar and Commerce Minister Piyush Goyal, the talks are expected to touch on expanding trade ties, critical mineral resources, and energy cooperation, marking a new phase in India-Argentina relations.
Lithium and Energy: Key Drivers of Bilateral Cooperation
Mondino’s visit underscores the growing partnership between Argentina and India, especially in lithium—a resource central to the global shift toward renewable energy and electric vehicles. Argentina, part of the renowned “Lithium Triangle,” boasts some of the world’s richest lithium deposits. Indian mining companies have already established a presence in Argentina’s Catamarca province, exploring lithium while eyeing opportunities in copper and gold. The recent Memorandum of Understanding (MoU) between JEMSE, an Argentine state-owned enterprise, and Khanij Bidesh India Ltd. (KABIL) aims to strengthen commercial links and foster technological development in the lithium sector.
This strategic partnership is pivotal for India’s electric vehicle ambitions, as lithium is a core component in battery production. Argentina’s favourable regulatory framework and abundant natural resources position it as a key player in the global lithium supply chain, further cementing its ties with India.
Securing Food and Energy Supplies
Food security is another crucial aspect of the talks, with Argentina playing an indispensable role as a top supplier of soybean and sunflower oil to India. As India seeks to ensure steady food supplies for its growing population, Argentina’s agricultural exports are vital in meeting domestic demand. The Argentine Ambassador to India, Mariano A Caucino, recently highlighted the significant growth in bilateral trade, emphasizing the importance of these commodities for Indian consumers.
Argentina’s potential as a long-term partner in India’s energy sector will also be explored during Mondino’s meeting with India’s Petroleum Minister, Hardeep Puri. Argentina’s state energy company, YPF, is spearheading a massive liquefied natural gas (LNG) project, which aims to position the country as a key LNG exporter by 2029. With India’s growing energy needs, the possibility of securing a long-term LNG supply deal with Argentina could be a game-changer for both nations.
Expanding Mercosur-India Trade Relations
In addition to food and energy, the talks are expected to address the expansion of trade between India and the Mercosur trade bloc, of which Argentina is a key member. Discussions with Commerce Minister Piyush Goyal will likely focus on enhancing bilateral trade, with rare earth minerals—including lithium—topping the agenda. The importance of trade between India and Mercosur has been steadily growing, with both sides exploring new avenues for cooperation in sectors such as agriculture, mining, and renewable energy.
Argentina’s Lithium Leadership
Argentina’s role in the lithium supply chain is a major talking point during Mondino’s visit. With 67% of the world’s proven lithium reserves located in the Lithium Triangle, Argentina is positioning itself as a global leader in lithium production. The Argentine province of Jujuy, where JEMSE operates, has identified key areas for mining exploration and development, further attracting investment from foreign companies. New investments in lithium battery production facilities for buses and energy storage for solar power plants are also underway, aligning with India’s push for renewable energy and electric mobility.
A Multifaceted Partnership
The visit of Argentina’s Foreign Minister marks a significant step in enhancing India-Argentina relations across various sectors. From ensuring food and energy security to expanding cooperation in the mining of critical minerals like lithium, the agenda reflects the evolving needs of both countries. As Argentina strengthens its ties with India, the two nations are poised to enter a new era of strategic collaboration that will shape their economic and energy futures.