Why India’s overseas critical asset push is stalling.
India wants lithium and cobalt for EVs and batteries. But buying mines abroad is proving harder than expected.
In December 2024, a consortium of KABIL, OIL and ONGC Videsh Ltd lost a bid to buy 10% stake in Argentina’s Cauchari and Olaroz lithium projects. The reason: a 40% stake was already taken by POSCO of South Korea. Earlier, KABIL also failed to get into 5 lithium blocks in Argentina. It had signed an NDA but withdrew over scale and financial concerns.
KABIL — a JV of NALCO, HCL and MECL — was set up in 2019 to acquire critical mineral assets abroad. The idea was simple: secure supply chains for batteries, EVs and electronics. But execution has hit hurdles.Three problems stand out.
First, valuation and competition. Global miners are in a rush. Chinese, Korean and Australian firms bid aggressively. India often arrives late or with smaller consortiums.
Second, risk appetite. The failed Argentina bid flagged concerns over lithium price volatility and long-term demand forecasts. Government firms are risk-averse compared to private global players.
Third, process delays. Bids require clearances, NDAs, and inter-ministerial coordination. By the time India moves, deals are gone.
The stakes are high. India imports 100% of lithium and cobalt. Domestic exploration will take years. Without overseas assets, the EV and battery manufacturing push depends on volatile global markets.
There are some wins. KABIL has projects in Australia, Chile, and is exploring in the US and Africa. But scale is missing. Experts say India needs a sovereign wealth fund-style vehicle with faster decision-making and higher risk tolerance. It also needs to partner with private Indian companies, not just PSUs.
The government has identified critical minerals as a national priority. But unless KABIL gets financial autonomy and political backing, India risks being a buyer at high prices, not an owner of resources.
For Viksit Bharat and energy security, the mineral hunt can’t afford more missed bids.