Kolkata: State-run Coal India is considering acquiring a lithium-focused unit of Canada-based Wealth Minerals that holds lithium assets in Chile, according to two sources familiar with the matter.
The discussions involve either a full acquisition of the unit or a joint venture between the companies. However, any final decision is expected only after Chilean authorities grant an extraction licence for the project.
Coal India and Wealth Minerals’ Chilean subsidiary, Kuska Minerals, jointly applied for a lithium extraction licence from the Chilean government in October 2025.
Coal India-Wealth Minerals Deal Awaits Chilean Approval
Talks between Coal India and Wealth Minerals have reportedly progressed significantly following months of discussions. However, the potential transaction is currently on hold pending approval of the lithium extraction licence.
One of the sources said that Coal India will take a decision on the proposed acquisition only after the licence is granted by the Chilean government.
The companies are considering two possible structures:
- Full acquisition of the lithium-focused unit
- Formation of a joint venture with Wealth Minerals
The ownership structure, investment commitments and other terms of a potential partnership have not yet been finalised.
The licensing process has faced delays following a change in government in Chile.
Neither Coal India nor Wealth Minerals has issued an official statement regarding the discussions.
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Wealth Minerals Holds Multiple Lithium Projects in Chile
Wealth Minerals has two other lithium projects in Chile, according to information available on the company’s website.
The company’s Chilean operations have attracted interest as India seeks to secure overseas supplies of critical minerals required for electric vehicles, batteries and the broader clean energy transition.
Coal India’s potential entry into the Chilean lithium sector would represent another step in the company’s efforts to diversify beyond its traditional coal business.
India Steps Up Overseas Lithium Strategy
India has so far secured limited overseas lithium assets. In 2024, India obtained rights for lithium exploration and mining across five blocks in Argentina, marking the country’s first overseas lithium venture.
The government has been encouraging state-owned companies to invest in overseas mineral assets to reduce India’s dependence on global supply chains dominated by China.
India has also entered into critical mineral cooperation agreements with countries including:
- Argentina
- Australia
- Japan
Discussions are also underway with Peru and Chile for broader cooperation in critical minerals.
India has separately entered agreements with Germany, Brazil and Canada aimed at improving access to mineral technologies, expertise and strategic resources.
Chile Key to Global Lithium Supply
Chile is one of the world’s major lithium-producing countries and holds significant lithium resources.
According to the US Geological Survey, Chile has the world’s third-largest lithium resources, estimated at around 13 million metric tonnes.
Chile, along with Argentina and Bolivia, forms part of South America’s major lithium-producing region.
Securing lithium resources in Chile could therefore support India’s efforts to build more resilient supply chains for critical minerals.
Coal India Looks Beyond Coal for Critical Minerals
Coal India’s potential lithium investment comes as the company explores opportunities beyond its core coal business.
Lithium is a critical component in rechargeable batteries used in electric vehicles, energy storage systems and other clean-energy applications.
An acquisition or joint venture in Chile could give Coal India exposure to the growing lithium value chain while supporting India’s strategic objective of securing critical mineral supplies overseas.
The move also reflects India’s broader efforts to strengthen access to resources needed for the country’s electric mobility and clean energy transition.
About Coal India
Coal India Limited (CIL) is a state-owned coal mining company under the Ministry of Coal, Government of India. It is one of the world’s largest coal-producing companies and supplies coal primarily to the power, steel and other industrial sectors. In recent years, the company has also been exploring opportunities in areas beyond conventional coal mining, including critical minerals, as part of its diversification strategy.
