State-owned Coal India is exploring a potential acquisition of Wealth Minerals’ Chilean lithium unit, signalling a bold move to secure vital resources amid shifting regulatory landscapes and India’s push to diversify its supply chains away from China.
Coal India is weighing a move into Chile’s lithium sector that could give India a more direct route to one of the world’s most sought-after critical minerals, according to Reuters. The state-owned company is studying the acquisition of the Chile-focused unit of Canada’s Wealth Minerals, in what would be one of India’s boldest efforts yet to secure overseas lithium supplies for electric-vehicle batteries and energy storage.
The talks have been building for months. Reuters, citing people familiar with the matter, reported that Coal India and Kuska Minerals, Wealth Minerals’ Chilean subsidiary, jointly applied for a lithium extraction licence in October 2025. That approval has been delayed by a change of government in Chile, and one source told Reuters the deal would only be decided after the licence is granted. A second source said the negotiations had reached an advanced stage, but could not move ahead without regulatory clearance.
The prospective transaction would build on Coal India’s earlier expansion plans in Chile. In February, the company’s board approved an intermediate holding company in the country to pursue lithium and copper opportunities, while later reports said Coal India was also preparing subsidiaries in Chile and Singapore as part of a wider push into critical minerals. Wealth Minerals, for its part, received approval in January for a lithium project in Ollagüe near the Bolivian border and said in April that interest from strategic partners had increased as Chile’s regulatory backdrop became more favourable.
If the acquisition does not proceed, a joint venture remains under consideration, though the ownership structure and investment terms have not been settled, Reuters said. The broader effort fits India’s strategy of reducing reliance on China-dominated mineral supply chains. Chile is a particularly important target: the U.S. Geological Survey puts the country’s lithium resources at about 13 million metric tons, making it the world’s third-largest holder after Argentina and Bolivia. India already has one overseas lithium exploration and mining agreement in Argentina and has been stepping up mineral diplomacy with countries including Australia, Japan, Peru and Chile.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
