India in talks to acquire lithium blocks in Australia, Chile; eyes five more in Argentina: Kishan Reddy
The Union Ministry of Mines confirmed that India is in talks to acquire lithium blocks in Australia and Chile, while separately pursuing five additional lithium blocks in Argentina
Khanij Bidesh India Limited (KABIL), the government's overseas critical-mineral exploration vehicle, has already begun exploration across more than 15,000 hectares in Argentina's Catamarca province and has signed cooperation agreements with Australia's Critical Minerals Office and Chile's state lithium company for due diligence on lithium and cobalt assets
The ministry called for greater private-sector participation in overseas mineral exploration, urging public sector undertakings such as Coal India Limited and Hindustan Copper Limited to pursue mineral block acquisitions on the same model as KABIL
The push is being framed within the wider National Critical Mineral Mission's effort to secure supply chains for battery-grade and clean-energy minerals, with lithium, cobalt, and rare earth elements identified as priority resources ahead of an expected surge in demand by 2040
India's Critical Minerals List (2023) and the National Critical Mineral Mission
In June-July 2023, an expert committee constituted by the Ministry of Mines identified a list of 30 critical minerals for India — including lithium, cobalt, nickel, rare earth elements (REE), graphite, and germanium — based on criteria of economic importance and supply-risk. This list underpins India's overseas and domestic mineral-security strategy. Building on it, the Union Cabinet approved the National Critical Mineral Mission (NCMM) in January 2025, with a total outlay of ₹34,300 crore over seven years (FY 2024-25 to FY 2030-31) — comprising roughly ₹16,300 crore in direct government expenditure and an expected ₹18,000 crore in investment by public sector undertakings and industry.
Key Details
- Critical minerals list released: 2023, by Ministry of Mines expert committee
- NCMM approved: January 2025; total outlay ₹34,300 crore (government share ~₹16,300 crore + PSU investment ~₹18,000 crore)
- NCMM covers exploration, mining (domestic and overseas), processing, recycling, and strategic stockpiling
- Recent Union Budget removed customs duty on 12 critical minerals to encourage domestic processing
The Australia-Chile-Argentina lithium talks are a direct instrument of the NCMM's overseas acquisition pillar, and the call for PSU/private participation reflects the Mission's goal of diversifying beyond KABIL as the sole overseas acquirer.
KABIL — India's Overseas Critical Mineral Vehicle
Khanij Bidesh India Limited (KABIL) was incorporated on 8 August 2019 under the Companies Act, 2013, as a joint venture of three central public sector enterprises under the Ministry of Mines: National Aluminium Company Ltd. (NALCO, 40%), Hindustan Copper Ltd. (HCL, 30%), and Mineral Exploration and Consultancy Ltd. (MECL, 30%). Its mandate is to identify, explore, acquire, and develop strategic mineral assets — chiefly lithium and cobalt — outside India for supply to domestic industry.
KABIL is the operational arm through which the Australia, Chile, and Argentina lithium-block talks referenced in the news are being conducted; the minister's call for PSU participation seeks to replicate KABIL's model through other entities.
MMDR Amendment Act, 2023 — Opening Critical Minerals to Private Exploration
The Mines and Minerals (Development and Regulation) Amendment Act, 2023 removed six minerals — lithium, titanium, beryllium, niobium, tantalum, and zirconium-bearing minerals — from the list of 12 "atomic minerals" under Part B of the First Schedule, which had earlier restricted their exploration and mining to government entities only. The amendment also empowered the Central Government to exclusively auction mineral concessions for critical and deep-seated minerals (Part D of the First Schedule) and introduced a new concession type, the Exploration Licence (EL), for reconnaissance and prospecting of such minerals.
The domestic reclassification of lithium as a private-sector-eligible mineral runs parallel to the government's push for private participation in overseas lithium acquisition — both aim to break the earlier public-sector monopoly on strategic mineral development.
Geography of Global Lithium Reserves — The "Lithium Triangle" and India's Domestic Deposits
Chile, Argentina, and Bolivia together form the "Lithium Triangle," a high-altitude Andean region of salt flats (salares) that holds an estimated more than half of the world's identified lithium reserves, extracted from brine through solar evaporation. Chile alone accounts for roughly a third of global reserves. This geographic concentration explains why India's overseas lithium strategy is focused on Australia (the largest current producer, via hard-rock/spodumene mining) and the Lithium Triangle states. Domestically, the Geological Survey of India in 2023 reported India's first lithium inferred (G3) resource of 5.9 million tonnes in the Salal-Haimana area of Reasi district, Jammu & Kashmir.
Key Details
- Lithium Triangle (Chile-Argentina-Bolivia) holds over half of world's lithium reserves; Chile ranks highest by reserve share
- Australia is the world's largest lithium producer by volume, via hard-rock spodumene mining (distinct from South America's brine extraction)
- India's only reported domestic lithium resource: 5.9 million tonnes (inferred/G3 category) in Reasi, J&K (GSI, 2023); auction of this block was previously attempted and later scheduled for re-exploration
- Lithium is essential for lithium-ion batteries used in electric vehicles and grid storage — central to India's clean-energy and EV transition goals
India's simultaneous pursuit of blocks in Australia and across the Lithium Triangle (Chile, Argentina) reflects a diversification strategy — securing both hard-rock and brine-based lithium sources — because domestic reserves remain inferred-stage and insufficient to meet projected demand.
- India's critical minerals list: 30 minerals identified (2023)
- National Critical Mineral Mission: ₹34,300 crore total outlay over FY 2024-25 to FY 2030-31 (₹16,300 crore government + ₹18,000 crore PSU investment)
- KABIL incorporated: 8 August 2019 (NALCO 40%, Hindustan Copper 30%, MECL 30%)
- KABIL's Argentina exploration area: over 15,000 hectares, Catamarca province
- Lithium Triangle (Chile-Argentina-Bolivia): holds over 50% of world's lithium reserves
- India's only known domestic lithium resource: 5.9 million tonnes (inferred/G3), Reasi district, Jammu & Kashmir (GSI, 2023)
- MMDR Amendment Act, 2023 removed lithium from the restricted "atomic minerals" list, enabling private exploration