Beyond Extraction: Can India Forge a New Model for Critical Minerals in Latin America? 

India’s ambitious clean energy transition and economic goals are increasingly dependent on securing critical minerals like lithium and copper, prompting a strategic pivot to Latin America’s resource-rich “Lithium Triangle.” However, to successfully compete with China’s established, extraction-heavy presence in the region, India must forge a new model of partnership that moves beyond mere resource acquisition.

By leveraging its strengths in sustainable technology, digital governance, and circular economy principles—such as promoting renewable-powered mining, battery recycling, and transparent supply chains—India can position itself as a collaborative knowledge partner, offering a pathway to shared prosperity and environmental stewardship that secures its supply chains while building more resilient and equitable diplomatic relations.

Beyond Extraction: Can India Forge a New Model for Critical Minerals in Latin America? 

The global race for clean energy is often depicted as a contest of technologies—solar panels versus fossil fuels, electric vehicles versus internal combustion engines. But beneath this surface lies a more fundamental, gritty struggle: the hunt for the critical minerals that make these technologies possible. For an emerging powerhouse like India, with its colossal ambition to become a $5 trillion economy and achieve net-zero emissions by 2070, this isn’t just a market trend; it’s a strategic imperative. And increasingly, the key to unlocking this future lies not in its immediate neighborhood, but in a region halfway across the globe: Latin America. 

While headlines are dominated by China’s resource dominance or Western green deals, India is quietly executing a pivotal geopolitical pivot. This move, centered on securing lithium, copper, and cobalt, could define the next chapter of its economic development and energy security. But success will require more than just signing contracts; it demands a fundamental rethinking of what a resource partnership can be. 

The Geopolitical Chessboard: Why Latin America is the New Center of Gravity 

The arithmetic is simple and compelling. The “Lithium Triangle” of Argentina, Bolivia, and Chile holds over 60% of the world’s known lithium reserves. Chile and Peru are copper giants, a metal so crucial for everything from wind turbines to power grids that it’s often called “the new oil.” For India, which currently imports a significant majority of its fossil fuels, building a predictable supply chain for these minerals is the foundational step to weaning itself off that dependency. 

However, India is not entering a vacuum. It is stepping onto a board where one player, China, has already secured a commanding position. Through a combination of direct investment—over $16 billion in mining and processing since 2018—and infrastructure diplomacy under the Belt and Road Initiative (BRI), China has woven itself deeply into the Latin American resource fabric. It is not just a buyer; it controls significant portions of the extraction, refining, and even battery production capacity within the region. 

India’s current engagements, while significant, are modest in comparison. The landmark agreement signed in January 2024 by Khanij Bidesh India Ltd (KABIL) with Argentina’s CAMYEN SE, granting exploration rights over 15,000 hectares of lithium-rich land, was a crucial first move. Follow-up MoUs with Chile and explorations in Peru and Bolivia signal a clear, sustained intent. 

But the critical question remains: In a crowded field dominated by a deep-pocketed competitor, what can India offer that is different? The answer lies in moving beyond a purely extractive relationship and building a partnership based on shared value and innovation. 

From Buyer to Partner: A Blueprint for a Different Kind of Engagement 

To truly secure its place, India must position itself not as another external power looking to mine and leave, but as a collaborative knowledge partner. This requires a multi-pronged strategy that addresses the core concerns and aspirations of Latin American nations. 

1. The Environmental and Social License to Operate 

The environmental cost of mining is Latin America’s pressing reality. Lithium extraction in Chile’s Atacama Desert consumes vast amounts of water in an already arid region, threatening indigenous communities and fragile ecosystems. Copper mining in Peru faces similar challenges. 

Here, India has a unique proposition. It can champion and co-develop sustainable mining technologies. Imagine Indian expertise in low-cost solar power being integrated to run solar-driven evaporation ponds for lithium, or wind-assisted ore processing for copper. By investing in and deploying these renewable-energy-powered extraction methods, India can drastically reduce the environmental footprint of mining. Coupling this with robust land rehabilitation programs would demonstrate a commitment to environmental stewardship that resonates with local communities and governments, building a crucial “social license to operate.” 

2. Integrating the Circular Economy 

A truly resilient supply chain isn’t just about digging more; it’s about wasting less. India can pioneer the integration of circular economy principles into its mineral strategy from the outset. Instead of a linear “take-make-dispose” model, India could work with partners to establish battery recycling hubs and copper reclamation systems within Latin America. This transforms waste into a valuable secondary resource, reduces long-term import dependency, and creates localized green jobs. It’s a powerful message: India isn’t just here to take your resources; it’s here to help build a sustainable, closed-loop industrial ecosystem. 

3. Mastering the Digital Supply Chain 

Transparency is the antidote to suspicion. In a world increasingly wary of resource exploitation, India can leverage its formidable IT prowess to build unprecedented trust. Implementing blockchain technology can create a tamper-proof ledger tracking every kilogram of mineral from the brine pond to the battery factory, ensuring ethical sourcing and labor practices. Internet of Things (IoT) sensors can monitor water usage, energy consumption, and environmental impact in real-time, providing verifiable data to regulators and communities. This digital governance layer would be a game-changer, setting a new global standard for responsible resource partnerships. 

4. Capturing Value Downstream 

The greatest value in the mineral supply chain lies not in the raw ore, but in the processed materials and finished products. To avoid a neo-colonial pattern, India should consider moving beyond mere extraction. Establishing joint ventures for battery component manufacturing or mineral processing plants in host countries like Argentina or Chile would be a strategic masterstroke. It would: 

• Capture more economic value for both India and the host nation. 

• Generate high-skilled local employment, strengthening diplomatic ties. 

• Diversify India’s own supply chain, making it less vulnerable to disruptions in shipping raw materials. 

Navigating the Risks: The Road Ahead is Fraught with Challenges 

This ambitious vision is not without its obstacles. The political and regulatory landscape in Latin America can be volatile, with shifts in government leading to changes in mining laws, royalty structures, or even moves toward resource nationalization. 

To mitigate this, India must craft carefully structured, multi-year agreements that provide legal stability while aligning incentives for all parties—host governments, local companies, and Indian partners. Innovative financing, such as green mineral bonds or blended public-private investment funds, can secure long-term capital and signal a commitment that transcends political cycles. 

Furthermore, India must actively diversify its engagements across the continent—not putting all its eggs in the Lithium Triangle basket. Building relationships with Brazil for nickel, Mexico for copper, and others will create a resilient and distributed network capable of withstanding regional shocks. 

Conclusion: A Test of Strategic Imagination 

India’s quest for critical minerals in Latin America is more than a resource play; it is a test of its geopolitical imagination and its ability to articulate a new model of South-South cooperation. Replicating China’s state-driven, infrastructure-for-resources model is neither feasible nor desirable for India. 

The winning strategy is to build a layered partnership—one that combines ethical extraction, technological innovation, circular economy principles, and digital transparency. By offering a partnership that prioritizes long-term shared prosperity and environmental responsibility over short-term extraction, India can do more than just power its own clean energy goals. It can position itself as a trusted, innovative leader in the global clean energy transition, proving that the path to a sustainable future can be built on the foundation of equitable and intelligent partnerships.