From Yahoo Finance: 2025-03-28 03:06:00

Four Indian state firms are in talks to acquire a 20% stake in Chilean miner SQM’s Australian lithium projects for $600 million. This move is part of India’s efforts to secure a steady supply of the EV battery metal to meet growing demand and reduce carbon emissions.

Government-backed Khanij Bidesh India Ltd (KABIL) has partnered with Coal India, Oil India, and ONGC Videsh for the stake in SQM’s Mount Holland and Andover lithium projects. The companies are currently in the process of appointing a mergers and acquisitions adviser for the deal.

India’s biggest attempt to secure lithium supplies overseas comes as the country aims to boost EV production and reduce reliance on fossil fuels. The move underscores India’s focus on securing critical minerals from resource-rich nations like Australia, Argentina, and Chile, with plans to explore agreements in cobalt-rich Congo.

Despite accounting for just 2.5% of car sales in 2024, EVs in India are experiencing rapid growth, outpacing the overall market. Analysts expect EV sales to double in 2025, driven by new launches and increasing demand for cleaner energy solutions in the country.

Read more: Exclusive-Indian state firms seek stake in SQM’s lithium projects in Australia, sources say