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Lithium forms the cornerstone of India’s switch to green energy
| Photo Credit:
ENRIQUE MARCARIAN
A consortium of CPSEs, cutting across three Ministries, is in talks for acquiring lithium assets – that include mines, both at an operational level or at a prospecting stage – overseas. The consortium and its members individually are on a global hunt, across three continents; exploring the possibility of picking up stakes in companies that have presence across critical mineral assets, including lithium block, multiple sources aware of these discussions said.
The geographies tapped include Australia – where due diligence is on; in Argentina – where JV talks are under way; Chile – where talks are being reconsidered; and in African nations – which are now being actively explored.
The consortium
At the forefront of this consortium: Coal India (under Ministry of Coal), KABIL (under Ministry of Mines) and Oil India (Ministry of Petroleum). The three units are in talks to pick up stake in “operational lithium mines” in Australia. Apparently, some of the PSUs had previously been in talks with a Chilean miner that had operations in the continent-nation. The discussions apparently continuing with some changes in the consortium composition.
“So in Australia, we could pick up stake in the company or in a couple of mines or both. Even if we pick up stakes in mines, these could be already operating ventures or ones which are at a prospecting stage. All the options are being discussed. And, this is time taking work,” the official in the know, told businessline.
Lithium forms the cornerstone of India’s switch to green-energy; with the mineral – now called white gold – finding usage in a variety of applications that include storage solutions, batteries, EVs, mobile phones, etc. India is completely import dependent on the mineral.
In Argentina, Coal India is exploring a 50:50 joint venture with Argentina’s YPF for lithium exploration, mining, and commercial use in the Latin American nation. A non-binding agreement was signed some months back and once lithium blocks are identified and finalized, a binding framework will be established, an official said, requesting anonymity.
Africa & Chile
In Africa too, India is exploring its options to tap into supply of critical minerals including copper. While Congo is a market where the Ministry is keen to look into for both cobalt and copper, Zimbabwe is mostly for platinum group elements (PGE), chrome, lithium, among others. Mongolia is mostly for interests in copper (and coal).
When asked, Debasish Nanda, Director Business Development, Coal India, said: “We are bound by non-disclosure agreements. So, I will not be able to divulge names.” He was speaking on the sidelines of a CII event in the city.
In Chile too, options are being explored. Earlier this year, around table organised by the International Copper Association, India, where possibilities of joint ventures, long-term supply arrangements, and cross-border investments were also discussed.
The National Copper Corporation of Chile (Codelco) has signed an agreement with India’s Adani Group, for the supply of metal concentrate to the latter’s $ 1.2 billion copper smelter, a single-location plant of its kind, located in Kutch, Gujarat. Chile’s state-owned Codelco, one of the largest copper mining companies across the globe, is likely to start supplies later this year.
Codelco has also signed a separate preliminary pact with Hindustan Copper to collaborate on exploring and processing minerals.
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Published on May 19, 2025
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