Coal India weighs buying Canada's Wealth Minerals unit for Chile lithium assets, sources say

NEW DELHI: Coal India, the world’s largest coal miner, is considering acquiring a unit of Canada’s Wealth Minerals with lithium mining assets in Chile, two sources familiar with the matter said.

The move would mark one of India’s most significant efforts to secure overseas lithium resources, a critical mineral used in electric vehicle batteries and energy storage systems.

India has had limited success in acquiring critical mineral assets abroad. So far, it has secured only one overseas lithium exploration and mining agreement, covering five blocks in Argentina in 2024.

As a first step, Coal India and Kuska Minerals, Wealth Minerals’ Chilean subsidiary, have jointly applied for a lithium extraction licence from the Chilean government, one of the sources said.

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Joint venture alternative

“The acquisition will be decided after the mining licence. Once we get the licence, we will decide what we will do ahead,” the source said, declining to be identified because the discussions are confidential.

Wealth Minerals has two other lithium projects in Chile, according to its website.

Coal India could alternatively form a joint venture with Wealth Minerals, although the structure, ownership split and investment commitments have yet to be determined, the sources said.

Neither Coal India nor Wealth Minerals immediately responded to requests for comment.

Reuters reported in April that Coal India was in talks with Wealth Minerals about a potential joint venture. The discussions over acquiring its Chile-focused lithium unit are being reported for the first time.

Coal India and Wealth Minerals applied for the mining licence in October 2025, but the process has taken time due to a change of government in Chile, the source said.

Coal India was in the final stages of negotiations to buy the unit after months of talks, but the deal could not proceed until the mining licence is granted, the second source said.

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Chile holds the world’s third-largest lithium resources, estimated at 13 million metric tons, behind Argentina and Bolivia, according to the U.S. Geological Survey.

India has been encouraging state-owned companies to acquire overseas mineral assets as New Delhi seeks to reduce reliance on China-dominated supply chains.

The government has signed critical minerals cooperation agreements with Argentina, Australia and Japan, and is discussing broader arrangements, including critical minerals partnerships, with Peru and Chile.

This year, India also signed agreements with countries including Germany, Brazil and Canada aimed at improving access to technology, expertise and mineral partnerships.