Four Indian state giants are in advanced negotiations with Chile's SQM, the world's second-largest lithium producer, to buy stakes in its Australian lithium projects. This is India's aggressive move to secure key minerals for its growing electric vehicle (EV) and renewable energy industries.
Key points:
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Companies involved: NMDC, Coal India, NALCO, and Hindustan Copper
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Focusing on stakes in SQM's Mt Holland lithium project in Western Australia
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Involving possible investment of $1-2 billion
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Coming as part of India's drive to cut down on dependence on China for the supply of lithium
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Falls in line with India's mission to become net-zero by 2070
The talks follow as India steps up the pace to build a local EV supply chain and decrease dependence on imported lithium-ion batteries. India has set a goal for EVs to make up 30% of total vehicle sales by 2030.
SQM's Australian operations, and in particular the Mt Holland project, are desirable because of the size of their reserves and long-term potential for production. Once up and running, the project is projected to supply 50,000 tonnes of battery-grade lithium hydroxide every year.
This prospective agreement highlights increasing international competition for lithium supplies, with India entering the fray alongside other large economies bidding to lock up supplies of the important battery metal.
Sources: Reuters, Economic Times, Mining.com, March 28, 2025