Coal India Limited is expanding its portfolio by exploring lithium brine assets in Argentina, aligning with global demands for critical minerals. The company is conducting due diligence while focusing on reducing coal dependency and fostering a transition to cleaner energy. A collaboration with IREL aims to enhance its mineral development capabilities and establish a robust supply chain for sustainable resources.
Coal India Limited (CIL) is strategically expanding its portfolio by targeting lithium brine assets in Argentina, as confirmed by a company official on January 12, 2025. Understanding the economic and strategic importance of minerals such as lithium, nickel, and cobalt, CIL is actively seeking opportunities in mineral-rich countries including Argentina, Australia, and Chile. The company has recently initiated a call for expressions of interest (EoI) from consultants to conduct technical due diligence on these assets.
Lithium brine, a saline solution rich in dissolved lithium, is highly sought after due to its crucial role in manufacturing lithium-ion batteries, particularly amid the rising demand from the electric vehicle sector. This venture aligns with CIL’s goal of reducing its coal dependency and transitioning towards cleaner energy resources, reflecting global trends prioritizing critical minerals for sustainable technologies. A senior CIL official emphasized, “Critical minerals are essential for electric vehicles, renewable energy systems, and advanced manufacturing, making them indispensable for India’s future industrial strategy.”
The Indian government identified 30 minerals, including lithium and nickel, as critical for fostering clean energy adoption. Through its foray into the critical minerals sector, CIL aims to establish a reliable supply chain that bolsters India’s shift towards an environmentally sustainable economy while enhancing its position in the global market. Argentina’s abundant lithium deposits are anticipated to play a vital role in CIL’s mineral strategy, marking a defining moment in its diversification efforts.
In addition, a recent non-binding Memorandum of Understanding (MoU) between Coal India Limited and IREL (India) Limited aims to promote the development of critical minerals, including mineral sands and rare earth elements. This collaboration focuses on asset acquisition, sourcing raw materials from both domestic and international markets, and establishing mining, extraction, and refining capabilities.
Coal India Limited, a leading state-owned miner, is diversifying its interests in response to the global shift towards clean energy technologies. The increasing demand for electric vehicles fuels the necessity for essential minerals like lithium, which are crucial for producing lithium-ion batteries. The Indian government has recognized specific minerals as critical to fostering a sustainable energy future. CIL’s strategic exploration in countries with rich mineral deposits reflects its commitment to adapting to these emerging trends.
CIL’s focus on lithium brine assets in Argentina is a significant step towards the diversification of its mineral portfolio, essential for supporting India’s transition to a greener economy. By actively engaging in the sourcing and development of critical minerals, CIL not only aims to secure a sustainable supply chain but also reinforces its competitive position in the global market for essential resources required by modern technologies.
Original Source: www.thehindu.com
