Government-owned Coal According to mining Secretary V L Kantha Rao, who was reported by Reuters on Wednesday, Australia and Chile are potential locations for lithium mining by India and NMDC.
Speaking outside of a New Delhi industry convention, Rao stated that his ministry is pushing other state-owned companies, such as ONGC Videsh, to look into vital minerals overseas. A second group will travel to the Congo to have talks of a similar nature.
The government, together with executives from Vedanta and the Tata Group, will send a group to Zambia in June in an attempt to acquire essential resources. It is anticipated that both countries would investigate cooperative projects in vital minerals like lithium.
According to Rao, India is thinking of extending its trade pact with Chile to include essential minerals. To access Mongolia’s resources of coal and copper, New Delhi is looking at trading channels with the country.
The third-largest carbon emitter in the world, India, declared 30 minerals, including lithium, to be “critical” to advancing its goals of greener technology last year. Even though the Centre just found its initial lithium deposits last year, it still wants to set up processing facilities nearby.
According to reports from earlier this month, India is thinking of offering incentives to entice private businesses to build facilities for processing lithium. With lithium being used in electric vehicle (EV) batteries, New Delhi hopes to boost the supply of this metal and encourage the growth of its fledgling mining industry.
In addition, the ministry of mines was trying to come up with a new key minerals policy that would provide incentives for businesses to establish lithium processing facilities.
While the details of these incentives are still being worked out, India is looking to Canada and Australia as role models. At the time, mining behemoths Vedanta Ltd. and Jindal Power, together with SoftBank-backed e-scooter maker Ola Electric, were fighting for key mineral blocks, including lithium.
India’s Ministry of Mines has directed state-owned enterprises Coal India Ltd (CIL) and NMDC Ltd to explore lithium mining opportunities abroad. This strategic move aims to secure lithium resources critical for India’s push towards electric vehicles (EVs), battery storage, and clean energy technologies.
Strategic Importance of Lithium
Lithium is a key component in rechargeable batteries used in EVs, consumer electronics, and renewable energy storage. As India accelerates its transition to green energy, ensuring a steady supply of lithium has become a national priority. Currently, India relies heavily on lithium imports, making overseas acquisitions crucial for reducing dependence on global supply chains.
Global Lithium Hunt
The directive encourages Coal India and NMDC to identify and acquire lithium assets in countries with significant reserves, such as Australia, Chile, Argentina, and Bolivia. Both companies are expected to leverage their expertise in mineral exploration and mining operations to secure long-term lithium supplies.
This initiative aligns with India’s broader efforts to strengthen its critical mineral supply chain, with similar exploration missions already underway in Latin America and Africa.
Way Forward
With global demand for lithium surging, India’s proactive approach aims to ensure resource security while supporting domestic EV and battery manufacturing. The government’s focus on overseas lithium assets will play a crucial role in sustaining India’s ambitions in the clean energy sector and reducing reliance on imports in the long run.
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