Coal India along with three PSUs in talk with SQM to acquire stake in lithium project: Sources
The Sources had hinted that Government-backed Khanij Bidesh India Ltd (KABIL) has partnered with Coal India, Oil India, and ONGC Videsh to seek the 20 per cent stake in SQM's Mount Holland and Andover lithium projects in Western Australia.
According to provisional sources, four of the public sector firms are in deliberative talks with Chilean miner SQM to acquire a 20 per cent stake in its two lithium projects in Australia for $600 million, the biggest effort to secure supplies of the key EV battery metal.
The Sources had hinted that Government-backed Khanij Bidesh India Ltd (KABIL) has partnered with Coal India, Oil India, and ONGC Videsh to seek the 20 per cent stake in SQM's Mount Holland and Andover lithium projects in Western Australia.
The second largest lithium producer in the world, SQM and the fastest-growing major economy in the world, has stepped up efforts to guarantee a consistent supply of lithium, expecting a spike in demand for the EV battery element, which is essential to lower carbon emissions from the world's third-largest emitter.
So far, this is India's largest effort to obtain lithium supply outside. The corporations have shown interest with an early bid and the due diligence is going. The sources claimed KABIL was recruiting a mergers and acquisitions counsel for the deal along with the three state companies.
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The nation has increased its attempts to obtain abroad agreements for obtaining vital minerals in resource-rich countries including Argentina, Australia, and Chile. New Delhi is also looking at a first deal with cobalt-rich Congo.
KABIL last year struck an exploration and development deal with a state-owned company in Argentina for the mining and exploration of five lithium blocks. India is attempting to promote EV manufacturing to lower its dependence on fossil fuels in the face of increasing energy demands.
The government has formed KABIL, a joint venture between the state-owned National Aluminium Company, Hindustan Copper, and Mineral Exploration and Consultancy - a few years ago to acquire, develop, and process strategic minerals overseas for use in India.
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