Chile is the largest supplier of critical minerals to India. A major share of lithium, including 32 per cent of lithium carbonate and 41 per cent of lithium oxides and hydroxides, has been imported from Chile in fiscal year 2025. For Chile, India offers one of the world’s largest consumer markets with stable and long-term demand.

India and Chile share more than seven decades of diplomatic relations, which have provided the foundation for growing economic cooperation. In recent years, the relationship has expanded to include strategic sectors such as critical minerals and renewable energy. As global demand for lithium continues to rise, Chile has become an important partner in India’s efforts to secure a stable supply of critical minerals.

This brief examines the prospects for an India–Chile partnership in the lithium supply chain. It explores whether the complementary strengths of the two countries can support cooperation across upstream (mining), midstream (refining and processing), and downstream (battery manufacturing) sectors. The brief argues that a mutually beneficial partnership can strengthen supply chain resilience while contributing to the growing global demand for lithium.

India–Chile Economic Relations

India and Chile economic relations have increased by more than threefold in 2020–25 (see Table 1). Chile is the fifth-largest trading partner of India in the Latin America and the Caribbean Region. Indian investments in Chile are around US$ 620 million, while Chile’s investments in India total US$ 118 million.[1] The Preferential Trade Agreement (PTA) was negotiated in 2007,[2] and both countries have now entered into negotiations towards the Comprehensive Economic Partnership Agreement (CEPA). India and Chile signed the Terms of Reference for a CEPA in May 2025.[3] During the visit of the former Chilean President Gabriel Boric to India in 2025, both countries agreed to accelerate collaboration in exploration, mining and processing, with research and development, to increase investment across the critical minerals value chain for mutual benefit.[4]

Francisco Pérez Mackenna, the Minister of Foreign Affairs of Chile, visited India in May 2026 for bilateral engagements aimed at strengthening economic cooperation. In an interview with ANI, Chilean Ambassador Juan Angulo said that there is a huge possibility for partnerships between India and Chile in the field of critical minerals and would like to see Indian investments in the country.[5]

Table 1. India–Chile Bilateral Trade (US$ million)

Source: Ministry of External Affairs, Government of India and Embassy of India Santiago[6]

Chile is also the largest supplier of critical minerals to India. A major share of lithium, including 32 per cent of lithium carbonate and 41 per cent of lithium oxides and hydroxides, has been imported from Chile in fiscal year 2025.[7] Chile ranks first in proven lithium reserves worldwide.

Table 2. World Lithium Reserves and Production[8] (Metric Tonne)

Source: United States Geological Survey (Mineral Commodity Summaries 2026)[9];

*Production data unavailable for the United States.

Lithium has emerged as white gold. From its use in batteries for electronic equipment in various fields like defence, renewable energy, and medical equipment to non-battery industrial uses in glass and ceramic production as a heat-resistant, durable component that adds strength to the host material, demand for this white metal is soaring. Chile currently has lithium mining and refining operations but lacks the downstream value chain of cathode and anode production, cell production, battery pack and module assembly.[10]

India secured exploration rights for five lithium brine blocks in Argentina’s Catamarca region in January 2024.[11] In April 2026, Khanij Bidesh India Limited (KABIL) received environmental clearance from the........

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