After Argentina deal, India targets Li blocks from Australia
India is stepping on the gas to secure lithium blocks in Australia as it aims to finalise a deal “likely within this fiscal year” through stateowned Khanij Bidesh India Ltd (KABIL).
Government o¡cials are reportedly pushing KABIL to accelerate the process and secure “at least one more acquisition” for the critical resource before the fiscal ends.
Discussions are reportedly under way for two lithium blocks and three cobalt blocks. The process of finalising a new consultant to conduct due diligence is in the last stages. The due diligence process will involve evaluating potential exploration sites and assessing the likelihood of significant lithium deposits.
SHIFTING GEARS
The previous consultant, PwC, was reportedly replaced, causing a six to eight months step back. However,
E&Y Australia is expected to be appointed “within the next few weeks.”
“There was a delay due to the change in consultant, but we’re catching up,” VL Kantha Rao, Mines Secretary, told businessline. “We’re targeting acquisition of lithium blocks in Australia by the end of this fiscal year, again by KABIL.” KABIL is a joint venture of Hindustan Copper, MECL and NALCO.
MOU WITH AUSTRALIA
In 2023, India and Australia announced that detailed due diligence would be carried out for target mineral blocks.
India’s KABIL and Australia’s Critical Mineral Office (CMO) have an MoU to jointly fund project identification and support potential investments by India in Australian critical minerals projects. KABIL and the CMO have also committed $3 million each for joint due diligence.
“Acquisitions in Australia will be slightly costlier than in Argentina; the financial requirements and details are being worked out — through KABIL — by the Ministry,” Rao said. This fast-tracked eort underscores India’s urgency to secure a critical resource for its burgeoning electric vehicle industry and reduce its reliance on Chinese imports.
GREEN ENERGY SHIFT
Lithium continues to be the corner-stone of India’s transition to green energy and reduction in its carbon footprint. Called ‘white gold’, lithium finds extensive usage across energy storage solutions that include EVs, car batteries and mobile phones.
Majority of the country’s lithium needs are imported. According to Commerce Ministry data, in FY23, lithium imports were at ₹266 crore, up 62 per cent y-o-y; imports of lithium oxide and hydroxide were at ₹553 crore, up 156 per cent y-o-y; lithium carbonate imports were at ₹179 crore, up 176 per cent, while lithium ion imports stood at over ₹23,000 crore, up 69 per cent y-o-y.
Earlier this year, India made its first overseas acquisition of five lithium brine blocks, namely Cortadera-I, Cortadera-VII, Cortadera-VIII, Cateo-202201810132 and Cortadera-VI, in Argentina. Around ₹200 crore will be invested in exploration, mining and subsequent otake of the mineral. A request for proposal (RFP) to appoint a “local partner” in the Latin American nation has been floated.