In March 2025, four Indian state-owned enterprises—Khanij Bidesh India Ltd (KABIL), Coal India, Oil India, and ONGC Videsh—initiated negotiations with Chilean mining company SQM to acquire a 20% stake in its Mount Holland and Andover lithium projects located in Western Australia. The proposed investment, valued at approximately $600 million, represents India's most significant effort to secure lithium resources essential for electric vehicle (EV) batteries.
This strategic move 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.
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.
SQM, the world's second-largest lithium producer, is actively seeking partners to finance its international expansion, particularly in Australia. The company's Mount Holland project, developed in partnership with Wesfarmers, is a key component of its strategy to establish a significant presence in the Australian lithium market. MINING.COMAustralian Financial Review
India's proactive approach to securing lithium resources is further evidenced by the activities of other state-owned enterprises. For instance, NMDC Ltd is conducting due diligence on potential lithium assets in Australia and Africa, aiming for strategic acquisitions to support India's clean energy transition. The Hindu Business Line
Additionally, India's Mines Ministry has reached out to Australia to access more lithium reserves and mines, collaborating with public sector undertakings like Coal India and NTPC to carry out due diligence, prospecting, and exploration activities. This initiative is part of a broader effort to reduce import dependence and achieve self-reliance in critical minerals. The Hindu Business Line
These concerted efforts by Indian state-owned enterprises and government agencies underscore the country's commitment to securing essential resources for its energy transition and technological advancement.
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