India-Peru had 5th round of Trade Negotiations held in Delhi. The negotiations for a proposed free-trade agreement (FTA) which aims to boost two-way commerce and investments. lithium is discovered in southern Peru and is high-grade and is seven times higher than the deposits of Bolivia and Chile.
A ray of hope Lithium in Peru! India-Peru Trade Negotiations held in Delhi
India and Peru celebrating 56 years of diplomatic relations and it can be a gateway to the region for Indian investors who wants to expand their steps. Peru is the 6th largest producer of gold and 2nd largest producer of silver and ranks the third producer of copper, tin, zinc, and lead.
The negotiations between the two countries are to either reduce or eliminate duties on most goods which are traded.
Lithium
With all these, an interesting fact is that recently lithium is discovered in South Peru located in the prehistoric lake which is covered with lava in the city of Puno. The quality of the lithium is said to be high-grade and is seven times higher than the deposits of Bolivia and Chile.
According to TERI
According to Debajit Palit, Director & Senior Fellow, Rural Energy, and Livelihoods Division, TERI, a high-grade and large reserves of lithium have been discovered in South Peru. This discovered mineral in Peru will add to the existing reserves in Bolivia, Chile, and Argentina.
India aims to adopt electric vehicles (EV) and Solar PV needs lithium in larger quantities for battery storage.
Palit says, If the trade relations goes positively between the two countries, India will have an advantage of sourcing the strategic lithium from Peru which is a great need and a key to success of the Indian EV program.
“In addition, to the joint venture, which has recently been formed by three public sector undertakings to acquire reserves of strategic minerals to power India’s move into EVs, the private sector should also take pro-active steps and start making lithium batteries in India by sourcing the raw material from countries such as Peru by entering into JVs with interested companies in those countries so that it benefits businesses of both countries and at the same time India can ensure raw material security of the strategic mineral resources to leapfrog towards EVs,” he added.
Independent trade consultant for LAC Region
Independent trade consultant for LAC Region, Sandeep Wasnik says that the discovery of Hardrock lithium will benefit India and the name “Lithium Triangle” will change as soon Peru will join the list. Peru is expected to export around $400-500 million Lithium to the world by 2021. However, price differences will be there for lithium from Peru and Lithium from Triangle.
“But this doesn’t matter, this will be a good opportunity for India to get it as it will be useful in setting up Giganet Battery Factories in India and complete its mission for Green Energy. Peru also contains 120 million pounds of Uranium in the same region,” Wasnik adds.
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