Mines ministry asks Coal India, NMDC to look for lithium mines overseas

Ministry will lead a delegation to Zambia in June and later to Congo to explore joint ventures in critical minerals

State-run Coal India and NMDC are exploring lithium mines in Chile and Australia, Reuters quoted Mines Secretary V L Kantha Rao as saying on Wednesday,.

Speaking on the sidelines of an industry conference in New Delhi, Rao said his ministry is encouraging other state-owned enterprises like ONGC Videsh to explore critical minerals abroad.

In a bid to secure vital resources, the ministry will send a delegation to Zambia in June, with representatives from the Tata Group and Vedanta. Both nations are expected to explore joint ventures in critical minerals such as lithium.

Another delegation will also venture to Congo for similar discussions.

Rao said India is considering expanding a trade agreement with Chile to encompass critical minerals. New Delhi is exploring trade routes with Mongolia to tap into its copper and coal assets.

India, the world's third-largest carbon emitter, last year identified 30 minerals, including lithium, as "critical" to support its ambitions for cleaner technologies. Despite discovering its first lithium reserves just last year, the Centre is looking to establish local processing facilities.

Companies such as SoftBank-backed e-scooter manufacturer Ola Electric, as well as mining giants Vedanta Ltd and Jindal Power, were also vying for critical minerals blocks, including lithium, at the time.

Reports earlier this month said India is considering incentives to encourage private companies to establish lithium processing facilities. New Delhi aims to foster the development of its nascent lithium mining sector and bolster the supply of this metal, which is especially significant due to its use in electric vehicle (EV) batteries.

The mines ministry was also looking to devise a new critical minerals policy under which companies would receive incentives to set up lithium processing plants. While the specifics of these incentives are still being determined, India is looking to models in countries like Australia and Canada for inspiration.