India is making a strategic push to secure vital resources for its electric vehicle (EV) industry by pursuing a 20% stake in two Australian lithium projects owned by Chilean mining giant SQM. The proposed $600 million deal involves a consortium of Indian state-owned enterprises, including Khanij Bidesh India Ltd (KABIL), Coal India, Oil India, and ONGC Videsh.
The Mount Holland and Andover lithium projects, located in Western Australia, are key assets within SQM’s operations, positioning it as one of the world’s largest lithium producers. India’s growing focus on lithium supply reflects its ambitions to become a major player in the global EV market, which is heavily reliant on the metal for battery production.
The country has been rapidly expanding its EV sector, with electric vehicles accounting for a growing share of new car sales. Government initiatives to reduce carbon emissions and promote sustainable transportation have further accelerated this growth. With sales expected to double in 2025, ensuring a steady supply of lithium is crucial to maintaining this momentum.
The Indian consortium has begun initial due diligence on the projects and is reportedly in the process of selecting a mergers and acquisitions adviser to support the transaction. The move is part of India’s broader strategy to secure critical minerals from resource-rich countries, which also includes partnerships with nations like Argentina and Chile. KABIL, in particular, has been active in exploring global lithium assets, having recently entered into a $24 million exploration deal for lithium blocks in Argentina.
If the negotiations are successful, the acquisition would mark one of India’s most significant overseas investments in the lithium sector. It would also enhance the country’s ability to meet the surging demand for EV batteries, reducing its reliance on imports and strengthening its energy security.
This deal is expected to have far-reaching implications, not only for India’s EV ambitions but also for the broader geopolitical landscape of critical mineral supply chains. As the world shifts towards clean energy, competition for resources like lithium will continue to intensify, making partnerships like this one increasingly strategic.
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