By: Khushbu Ahlawat, Consulting Editor, GSDN
Introduction
The global transition toward clean energy has fundamentally altered the geopolitical significance of natural resources. While fossil fuels dominated the twentieth century’s geopolitical rivalries, the twenty-first century is witnessing the emergence of critical minerals such as lithium, cobalt, nickel, and copper as the new strategic commodities shaping international economic and security relations. These minerals are indispensable for manufacturing electric vehicle batteries, renewable energy infrastructure, energy storage technologies, and advanced electronics. As countries accelerate their decarbonisation strategies to address climate change and meet their commitments under the Paris Agreement, access to these resources has become a central component of national security and economic policy.
For India, the challenge is particularly significant. The country aims to achieve net-zero emissions by 2070, expand renewable energy capacity to 500 GW by 2030, and rapidly electrify its transportation sector. These ambitions require massive quantities of lithium and copper, minerals that India lacks domestically in sufficient quantities. Consequently, the search for reliable external sources has become a priority within India’s strategic planning. Latin America has emerged as one of the most promising regions in this regard.
Latin America holds some of the largest reserves of lithium and copper in the world. The so-called “Lithium Triangle”—Argentina, Bolivia, and Chile—contains more than 60 percent of global lithium reserves, while countries such as Chile and Peru are among the world’s leading producers of copper. Historically, these resources were primarily integrated into global supply chains dominated by Western companies and later by China’s expanding mining investments. However, the evolving geoeconomic landscape has created new opportunities for countries like India to build partnerships with Latin American states.
This article examines how India’s engagement with Latin America’s critical mineral sector represents both an economic necessity and a strategic opportunity. It explores the historical evolution of global mineral geopolitics, the emergence of critical minerals as instruments of geoeconomic competition, the strategic significance of Latin America for India’s energy transition, and the challenges and opportunities that accompany this partnership. Ultimately, the article argues that India’s approach to Latin America must move beyond resource extraction toward a comprehensive framework of technological collaboration, environmental sustainability, and long-term economic cooperation.
Historical Evolution of Resource Geopolitics and the Rise of Critical Minerals
Resource geopolitics has long shaped global power structures. During the twentieth century, oil and natural gas dominated geopolitical calculations, influencing conflicts, alliances, and economic policies. The oil crises of the 1970s demonstrated how resource scarcity could destabilise global economies and reshape international relations. Scholars such as Daniel Yergin have described oil as “the prize” that determined geopolitical rivalries throughout modern history. However, the global energy transition is now redefining the strategic landscape. Renewable energy systems rely less on fossil fuels but depend heavily on critical minerals used in batteries, power grids, and renewable technologies. According to the International Energy Agency, demand for lithium could increase more than forty times by 2040 if countries pursue aggressive climate goals. Copper demand is also expected to rise significantly due to its use in renewable energy infrastructure, electric vehicles, and power transmission networks. Scholars increasingly describe this transformation as the “new geopolitics of energy transition.” Political economist Jeff Colgan argues that the shift toward renewable technologies will not eliminate resource politics but rather transform it by creating new dependencies. Instead of oil pipelines and tanker routes, global competition will revolve around mineral supply chains, refining capacities, and battery technologies. Historically, Latin America has played a crucial role in global resource extraction. During the colonial period, the region supplied silver, gold, and other minerals to European empires, shaping the global economic order. In the twentieth century, copper mining in Chile and Peru became central to industrial development, while multinational corporations dominated resource extraction industries. However, political movements across Latin America have often contested foreign control over natural resources, leading to nationalisation policies and stronger state involvement in mining sectors.
Today, the resurgence of interest in critical minerals has revived debates about resource sovereignty, environmental sustainability, and equitable development. Latin American countries are increasingly seeking to ensure that mineral extraction contributes to domestic economic development rather than merely serving external markets. This context shapes how India and other global actors engage with the region.
Latin America’s Strategic Importance in the Global Energy Transition
Latin America occupies a central position in the global critical mineral landscape. The Lithium Triangle—comprising Argentina, Bolivia, and Chile—contains vast lithium deposits embedded in salt flats and desert ecosystems, making it one of the most strategically valuable resource zones in the world. Lithium extracted from these regions is essential for producing lithium-ion batteries used in electric vehicles, renewable energy storage systems, and portable electronics.
Chile has long been one of the world’s largest lithium producers and also possesses extensive copper reserves. Peru is another major global supplier of copper, contributing significantly to global industrial supply chains. Bolivia, although possessing enormous lithium reserves, has historically struggled to develop large-scale extraction due to technological challenges and political debates over resource control. The strategic importance of these minerals has attracted intense global competition. China has emerged as a dominant actor in the critical mineral sector, investing heavily in mining operations, processing facilities, and battery manufacturing. Chinese companies have acquired stakes in major lithium projects in Argentina and Chile while also expanding their presence in Peru’s copper sector. These investments form part of China’s broader strategy to secure supply chains for its rapidly expanding electric vehicle and renewable energy industries.
The United States and European Union have also recognised the strategic importance of critical minerals. In recent years, Western governments have introduced initiatives to diversify supply chains and reduce dependence on Chinese processing capabilities. Programs such as the US-led Mineral Security Partnership aim to develop responsible and sustainable mineral supply chains by supporting mining projects in resource-rich regions. In this evolving geopolitical environment, Latin American countries have gained new bargaining power. As economist Ricardo Hausmann notes, countries rich in critical minerals have the opportunity to leverage global demand to negotiate better terms for development, including technology transfer, local industrialisation, and environmental safeguards.
India’s Strategic Engagement with Latin America’s Mineral Sector
India’s engagement with Latin America has expanded significantly in recent years, particularly in the context of securing critical mineral resources. Traditionally, India’s foreign policy toward Latin America focused primarily on trade and diplomatic cooperation. However, the accelerating energy transition has elevated the region’s importance within India’s strategic calculations. One of the most significant developments occurred in January 2024, when Khanij Bidesh India Limited (KABIL)—a joint venture of Indian public sector enterprises—signed an agreement with Argentina’s state-owned mining company CAMYEN SE. This agreement granted India rights to explore and develop lithium reserves in the Catamarca province, covering more than 15,000 hectares of lithium-rich brine blocks. The partnership marked India’s first direct mining investment in Latin America’s lithium sector. Further cooperation followed in February 2025, when India and Argentina signed an additional memorandum of understanding to deepen collaboration in exploration and resource development. At the same time, India initiated discussions with Chile to expand cooperation in both lithium and copper mining. Indian private companies have also begun exploring opportunities in Peru and Bolivia, reflecting growing interest in the region’s mineral potential. India’s strategy is not limited to securing raw materials. Policymakers increasingly emphasise the need to integrate mineral supply chains with domestic manufacturing initiatives such as the National Critical Mineral Mission (NCMM) and India’s electric vehicle ecosystem. By combining overseas resource acquisition with domestic processing and battery production, India aims to reduce its dependence on imported energy technologies.
Scholars argue that India’s approach differs from earlier extractive models often associated with traditional resource diplomacy, which often prioritized raw material extraction with limited benefits for host countries. According to strategic analyst Harsh V. Pant, India seeks to build mutually beneficial partnerships that combine resource access with development cooperation, technology transfer, and capacity building. This approach reflects India’s broader foreign policy emphasis on South–South cooperation, where economic engagement is framed as collaborative development rather than unilateral extraction. In the context of critical minerals, India has increasingly promoted joint exploration, knowledge exchange, and infrastructure development with partner countries.
Recent initiatives illustrate this evolving strategy. In January 2024, India’s state-owned consortium Khanij Bidesh India Limited (KABIL) signed an agreement with Argentina’s provincial mining company CAMYEN SE to explore five lithium-rich blocks in Catamarca province, covering about 15,703 hectares of lithium brine deposits—India’s first overseas lithium mining project. The partnership not only aims to secure lithium for India’s electric vehicle and renewable energy sectors but also promotes knowledge exchange and sustainable mining practices. Similarly, India has expanded dialogue with Chile and Bolivia on lithium and copper cooperation, while encouraging private companies to invest in mineral exploration and battery value chains across the region.
Beyond Latin America, India has also pursued multilateral collaboration to strengthen resilient supply chains. Its participation in initiatives such as the Minerals Security Partnership and domestic programs like the National Critical Mineral Mission reflects a strategy that integrates overseas resource access with domestic processing, recycling, and technological development. In this sense, India’s mineral diplomacy increasingly combines resource security with sustainable development partnerships, reinforcing its image as a collaborative actor in the emerging geoeconomics of the global energy transition.
Challenges, Environmental Concerns, and the Future of Sustainable Mineral Partnerships
Despite the opportunities presented by India–Latin America cooperation, the path forward is not without challenges. One major issue concerns the environmental impact of mineral extraction. Lithium mining in the Atacama Desert in Chile requires large quantities of water, potentially threatening fragile ecosystems and local communities. Similarly, copper mining operations in Peru have faced protests from indigenous groups concerned about environmental degradation and resource exploitation. Environmental scholars warn that the global energy transition must avoid reproducing the extractive injustices associated with fossil fuel industries. As Kate Raworth’s “Doughnut Economics” framework suggests, sustainable development requires balancing economic growth with ecological limits and social equity. Applying these principles to critical mineral extraction will be essential to ensure that the transition to clean energy does not create new forms of environmental harm. Political risks also shape the investment environment in Latin America. Changes in government policies, royalty structures, or mining regulations can significantly affect foreign investments. Bolivia, for example, has historically pursued a state-centric approach to lithium development, emphasising national control over resources. Chile has also debated reforms aimed at increasing state participation in the lithium sector.
Another challenge concerns global market volatility. Mineral prices fluctuate based on technological innovations, demand shifts, and geopolitical tensions. The rapid development of alternative battery technologies or recycling systems could alter the global demand for certain minerals. For India, this uncertainty underscores the importance of diversifying supply chains and developing domestic recycling capabilities. Nevertheless, these challenges also create opportunities for innovation. India could position itself as a leader in sustainable mining technologies, renewable-energy-powered extraction processes, and circular economy practices. Recycling lithium-ion batteries and recovering copper from electronic waste could significantly reduce dependence on new extraction while supporting environmental sustainability.
Conclusion
The global transition to clean energy is reshaping the geopolitical significance of natural resources. Critical minerals such as lithium and copper are emerging as the strategic commodities of the twenty-first century, underpinning renewable energy systems, electric mobility, and advanced technologies. As demand for these minerals grows rapidly, countries are increasingly competing to secure stable and diversified supply chains. For India, Latin America represents a crucial partner in achieving its clean energy ambitions and economic development goals. The region’s vast lithium and copper reserves provide an opportunity for India to strengthen its resource security while expanding its diplomatic and economic engagement beyond traditional partners. Recent agreements with Argentina and ongoing negotiations with other Latin American countries illustrate the growing strategic importance of this relationship.
However, successful cooperation will require more than simple resource extraction. India must adopt a comprehensive strategy that integrates technological collaboration, environmental sustainability, and long-term economic partnerships. By investing in responsible mining practices, supporting local development, and promoting knowledge exchange, India can position itself as a trusted partner in the global critical mineral economy. Ultimately, the future of the global energy transition will depend not only on technological innovation but also on the governance of resource supply chains. Latin America’s mineral wealth and India’s technological ambitions together offer the possibility of a new model of cooperative geoeconomics, one that supports sustainable development while addressing the pressing challenge of climate change.
About the Author
Khushbu Ahlawat is a research analyst with a strong academic background in International Relations and Political Science. She has undertaken research projects at Jawaharlal Nehru University, contributing to analytical work on international and regional security issues. Alongside her research experience, she has professional exposure to Human Resources, with involvement in talent acquisition and organizational operations. She holds a Master’s degree in International Relations from Christ University, Bangalore, and a Bachelor’s degree in Political Science from the University of Delhi.
