Critical mineral hunt abroad: India eyes Zambia and Chile deals; $4 billion push puts critical mission in focus

India has placed its $4 billion National Critical Mineral Mission at the heart of its energy strategy, with fresh emphasis on overseas acquisitions to secure supplies of lithium, cobalt and nickel.

Union Minister for Coal and Mines G Kishan Reddy said on Tuesday that state-run Khanij Bidesh India Limited (KABIL) is holding active negotiations with Zambia, Chile and other nations for new assets after recently acquiring lithium blocks in Argentina, PTI reported.

Reddy, who was speaking at the launch of the sixth tranche of critical mineral block auctions, stressed that the surge in demand for electric vehicle batteries and renewable energy by 2030 — expected to triple globally — requires India to strengthen both domestic exploration and international tie-ups.

The minister said New Delhi has also entered into memoranda of understanding with Japan, Peru, Australia and the UAE to build secure supply chains. He noted that India’s $4 billion allocation for its critical minerals programme far outweighs the $1 billion earmarked by the US for the same sector.

To spur domestic growth, the government has introduced reforms through the amended MMDR Act 2025, removed import duties on 23 critical minerals, and approved a financial incentive scheme to scale up recycling capacity. Transparent trading has been enabled through newly set-up coal and mineral exchanges, alongside facilities for mining deep-seated reserves.

The fresh auction round launched on Tuesday has put 23 mineral blocks up for bids, with first-time participation from states such as Telangana, Punjab, Uttarakhand and West Bengal.