In a significant move to secure critical mineral resources, four Indian state-owned enterprises—Khanij Bidesh India Ltd (KABIL), Coal India, Oil India, and ONGC Videsh—are in negotiations with Chilean mining giant SQM to acquire a 20% stake in its Mount Holland and Andover lithium projects in Western Australia. The proposed investment, valued at approximately $600 million, represents India's most substantial effort to date in securing lithium supplies essential for electric vehicle (EV) batteries and renewable energy storage systems.
This strategic initiative aligns with India's broader goals to accelerate EV adoption and reduce carbon emissions. In 2024, EV sales in India accounted for just 2.5% of the 4.3 million cars sold, but they exhibited a 20% growth rate, outpacing the overall car market's 5% growth. Analysts anticipate that EV sales will double in 2025, driven by new model launches and supportive government policies.Reuters
The Indian consortium has initiated due diligence processes and submitted initial offers for the stake acquisition. They are also in the process of appointing a mergers and acquisitions adviser to facilitate the deal. This move is part of India's broader strategy to secure critical minerals globally, with recent efforts to explore agreements in Argentina, Australia, Chile, and the Democratic Republic of Congo.Reuters+1Investing.com+1
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