Coal India, the world’s largest coal producer, is considering acquiring a unit of Canada’s Wealth Minerals that holds lithium assets in Chile, in a move that could significantly expand the Indian state-run miner’s presence in the global critical-minerals sector.
The potential transaction is part of India’s broader effort to secure overseas supplies of lithium, a key raw material used in electric-vehicle batteries, energy-storage systems and several advanced technologies. Coal India and Wealth Minerals’ Chilean subsidiary, Kuska Minerals, have jointly applied for a lithium extraction licence from the Chilean government.
According to people familiar with the discussions, the acquisition would depend on approval of the lithium licence. A joint venture between Coal India and Wealth Minerals is also being considered as an alternative, with negotiations reportedly continuing.
The move comes as Coal India accelerates its diversification beyond thermal coal and looks to build a portfolio of critical minerals. Earlier this year, the company approved the creation of an intermediate holding company in Chile to pursue opportunities in lithium, copper and other strategic minerals.
Chile is particularly important to India’s critical-minerals strategy because of its substantial lithium resources and established position in the global lithium industry. Wealth Minerals’ Chilean portfolio includes the Kuska Salar Project, Yapuckuta Project and Pabellón Lithium Project.
The proposed deal also fits into India’s efforts to reduce dependence on concentrated global supply chains, particularly those dominated by China. Securing overseas lithium resources could help Indian companies strengthen supply security for the country’s growing electric-vehicle, battery and renewable-energy industries.
If completed, the transaction would mark an important step in Coal India’s transformation into a broader natural-resources company, while giving India greater exposure to one of the world’s most strategically important battery minerals.