Government forms PSU consortium to acquire lithium globally

With the government's heightened focus on electrification of vehicles, demand for rare minerals like lithium, which is not available in India, is set to rise sharply. Now the government is making moves to ensure easy availability, in a manner similar to what China did albeit many years ago.

The government of India has announced that it is to set up a new joint venture christened Khanij Bidesh India (KABIL) with the participation of three central Public Sector Enterprises namely — National Aluminium Company (NALCO), Hindustan Copper (HCL) and Mineral Exploration Company (MECL).

KABIL will ensure a consistent supply of critical and strategic minerals for the Indian domestic market, by ensuring mineral security for the country and also in realise the overall objective of import substitution, said Pralhad Joshi, minister of Coal, Mines and Parliamentary Affairs.

Joshi said as the government has been emphasising on higher adoption of electric vehicle mobility, therefore it is important to ensure energy storage through batteries.

The JV will also help other segments like aviation, defence and space research that also require minerals with lower weight and high mechanical strength. The 12 minerals identified as strategic minerals, which have meagre resource base, include lithium and cobalt, which are the most significant.

KABIL will be responsible in carrying out identification, acquisition, exploration, development, mining and processing of strategic minerals overseas for commercial use and meeting country’s requirement of these minerals. The sourcing of these minerals or metals is to done by creating trading opportunities, G2G (government to government) collaborations with the producing countries or strategic acquisitions or investments in the exploration and mining assets of these minerals in the source countries.

The new PSU will help in building partnerships with other mineral rich countries like Australia and those in Africa and South America, where Indian expertise in exploration and mineral processing will be mutually beneficial bringing about new economic opportunities. The equity participation between NALCO, HCL and MECL is in the ratio of 40:30:30.

The joint venture agreement was signed in the presence of Pralhad Joshi, Minister of Mines, Coal and Parliamentary Affairs; Anil Mukim, secretary Mines and other senior officers.