Coal India Limited (CIL), India’s state-owned mining giant, has reinitiated discussions with Chilean authorities to acquire lithium blocks in the country’s vast salt flats. This move is part of India’s broader strategy to secure critical minerals essential for its transition to clean energy and the burgeoning electric vehicle (EV) market.
Strategic Importance of Lithium
Lithium is a pivotal component in lithium-ion batteries, which power EVs and are integral to renewable energy storage solutions. With the global shift towards sustainable energy, the demand for lithium has surged, making its acquisition a national priority for countries like India.
India’s Collaborative Efforts
The Indian government has been proactive in securing critical mineral resources. Khanij Bidesh India Ltd (KABIL), a joint venture between National Aluminium Company, Hindustan Copper, and Mineral Exploration and Consultancy, has been at the forefront of these efforts. KABIL, in collaboration with CIL, Oil India, and ONGC Videsh, is negotiating with Chilean miner SQM to acquire a 20% stake in its Mount Holland and Andover lithium projects in Western Australia for $600 million.
Chile’s Lithium Landscape
Chile is home to approximately half of the world’s viable lithium reserves and is the second-largest producer globally. In March 2024, the Chilean government announced new opportunities for private sector investors in lithium exploration, inviting expressions of interest for the development of projects in the country’s salt flats.
Government-to-Government Engagement
India’s Mines Ministry has suggested that discussions regarding an India–Chile Free Trade Agreement (FTA) encompass securing critical minerals, including the acquisition of copper and lithium mines. A delegation of industry and government officials recently visited Chile to explore the scope of larger economic cooperation, including securing critical mineral partnerships.
