Coal India Ltd (CIL) is working on a 50:50 joint venture with Argentina’s YPF to explore, mine, and commercially utilize lithium in Latin America. The two companies signed a non-binding agreement two months ago. Once they identify and finalize lithium blocks, they will establish a binding framework.
Coal India’s Strategic Diversification into Lithium
As India’s largest coal miner, Coal India is actively diversifying into lithium mining, recognizing its critical role in energy storage solutions such as mobile phone batteries and electric vehicles (EVs). India currently relies entirely on imports for both raw and processed lithium, making domestic mining initiatives vital for energy security.
Argentina Partnership and Government Collaboration
YPF SA, Argentina’s state-majority energy company specializing in oil and gas exploration, production, refining, and marketing, will partner with Coal India in this venture. The collaboration has elements of a government-to-government (G2G) arrangement. Investment details will be determined once lithium blocks are allocated. If the deal moves forward, Coal India will become the second Indian public sector unit (PSU) to enter Argentina’s lithium sector, following the Mines Ministry-owned Khanij Bidesh India Ltd (KABIL).
India’s First Lithium Acquisition in Argentina
In January last year, KABIL became the first Indian entity to secure lithium blocks in Argentina’s Catamarca district. Currently, non-invasive exploration is underway in those regions.
Due Diligence on Lithium Blocks in Australia
Coal India is also conducting due diligence on lithium-bearing blocks in Australia. A consortium of PSUs, including KABIL, Oil India, and ONGC Videsh, is involved in early discussions. The consortium’s structure is still under review, and Coal India is expected to play a key role.
Talks with Private Lithium Stakeholders in Australia
Coal India is in discussions with private companies that own lithium assets in Australia. However, ownership fragmentation has slowed progress. Some stakeholders are willing to sell their stakes, while others remain hesitant, causing delays in negotiations.
Coal India’s Capital Expansion Plan
As part of its long-term growth strategy, Coal India plans a capital expenditure of approximately ₹18,000 crore for FY25. As reported by thehindubusinessline.com, the company aims to expand beyond coal and invest in critical minerals to support India’s energy transition.
