The world’s biggest coal producer is preparing for a future that may not run on coal alone. Coal India is considering taking over the Chilean lithium business of Canada’s Wealth Minerals, a move that would rank among India’s most important initiatives to secure supplies of the battery metal abroad.
In a first step, Coal India and Kuska Minerals, a Chilean unit of Wealth Minerals, have jointly asked the Chilean government for a lithium mining licence. Wealth Minerals says on its website that it holds two other lithium projects in Chile. According to Reuters, Coal India could still choose a joint venture with Wealth Minerals instead of an outright acquisition, but the ownership structure, stake split and investment commitments have not been settled.
Coal India, created on 1 November 1975, produced 781.1 million tonnes of coal in the 2024-2025 financial year. It is the largest coal mining company in the world and has long been scanning opportunities beyond its core business, including overseas projects that have nothing to do with extracting ‘black gold’.
Why a coal champion is chasing lithium
Reuters reported in April that Coal India was in talks with Wealth Minerals about a possible joint venture. Later reports pointed to negotiations over acquiring the Chilean unit focused on lithium production. One source said Coal India, after months of talks, was in the final phase of negotiating the purchase, although the deal cannot be completed until a mining concession is granted.
Chile holds the world’s third-largest lithium resources, estimated at 13 million tonnes, according to the US Geological Survey. Only Argentina and Bolivia have larger reserves. Lithium is a key mineral for electric vehicle batteries and energy storage systems.
India’s push to loosen China’s grip on critical minerals
New Delhi has been encouraging state-owned enterprises to buy mineral assets overseas as it tries to reduce reliance on supply chains dominated by China. The Indian government has signed cooperation agreements on critical minerals with Argentina, Australia and Japan, and is also holding talks on broader arrangements with Peru and Chile.
The possible acquisition of Wealth Minerals’ Chilean arm would represent a clear signal of how a traditional coal giant is hedging its bets. If the deal goes through, Coal India would gain exposure to one of the world’s most important lithium regions and take part in the global energy transition.
Source: WNP.PL, Photo: Loner Nguyen / Shutterstock
