Indian firms to buy stake in SQM Lithium Projects
India is making bold strides in securing critical minerals for its electric vehicle (EV) revolution. In a significant move, four state-owned enterprises are negotiating with Chilean mining giant SQM to acquire a 20% stake in its two lithium projects in Australia. This $600 million deal represents India’s most ambitious overseas lithium acquisition effort to date, reinforcing its commitment to becoming a global leader in electric mobility.
India’s Push for Lithium Independence
With the demand for lithium soaring due to the rapid expansion of EVs, India has intensified its search for overseas agreements to secure long-term supplies of the key battery metal. Government-backed Khanij Bidesh India Ltd (KABIL), in collaboration with Coal India, Oil India, and ONGC Videsh, is leading discussions to invest in SQM’s Mount Holland and Andover lithium projects in Western Australia.
SQM, the world’s second-largest lithium producer, is a key player in the global battery supply chain. By securing stakes in these projects, India aims to reduce its dependence on imports and create a steady supply chain for its growing EV sector.
Expanding Global Partnerships
This initiative follows India’s broader strategy to secure critical minerals from resource-rich nations. New Delhi has been actively engaging with countries like Argentina, Chile, and Australia, and is also exploring a preliminary agreement with cobalt-rich Congo.
Last year, KABIL signed an exploration and development agreement with an Argentine state-owned firm for the mining of five lithium blocks. The latest discussions with SQM further underscore India’s determination to strengthen its position in the global EV ecosystem.
Powering India’s EV Future
India’s efforts to secure lithium align with its ambitious plans to boost EV adoption and cut carbon emissions. While EVs accounted for just 2.5% of the 4.3 million cars sold in India in 2024, their 20% growth rate outpaced the overall automobile market. Analysts predict a doubling of EV sales in 2025, driven by new model launches and policy support.
A Strategic Leap for India’s EV Ecosystem
By investing in overseas lithium projects, India is taking a proactive approach to addressing its supply chain vulnerabilities. This strategic move will not only benefit domestic EV production but also strengthen the country’s position in the global green energy transition.
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As India moves towards a cleaner, more sustainable future, securing access to critical minerals like lithium will be crucial. The ongoing negotiations with SQM mark a significant milestone in India’s journey towards energy security and EV industry dominance.
