Coal India eyes lithium mining JV with Argentina’s YPF; due diligence underway in Australia

State-owned miner Coal India Ltd (CIL) is exploring a 50:50 joint venture with Argentina’s YPF for lithium exploration, mining, and commercial use in the Latin American nation.

A non-binding agreement was signed two months ago, and once lithium blocks are identified and finalised, a binding framework will be established, an official, requesting anonymity, told businessline.

Coal India, India’s largest coal miner, is looking to diversify into lithium, a critical component in energy storage solutions including mobile phone batteries and electric vehicles (EVs). India is entirely import-dependent for lithium, both in raw and processed forms.

YPF SA (Fiscal Oilfields) is a majority State-owned Argentinian energy company engaged in oil and gas exploration, production, refining and marketing. The official added that the partnership has elements of a government-to-government (G2G) arrangement, and investment details will be finalised once lithium blocks are allotted.

“This is a G2G arrangement, and more structured to execute. And once the blocks are identified and allotted, investment details will be finalised,” the official added.

Expanding India’s lithium footprint

If the deal materialises, Coal India would become the second Indian PSU to enter Argentina’s lithium sector, following the Mines Ministry-owned KABIL (Khanij Bidesh India Ltd).

In January last year, KABIL became the first Indian entity to acquire five lithium blocks in Argentina’s Catamarca district, where non-invasive exploration is currently underway.

Often called “white gold,” lithium forms the cornerstone of India’s green energy transition.

Prospects in Australia

Coal India has also initiated due diligence on lithium-bearing blocks in Australia.

“Initial discussions have begun through a consortium of public sector undertakings (PSUs), and Coal India is expected to be a key participant,” a second official said. The consortium’s structure is still being finalised – with names of KABIL, Oil India, ONGC Videsh being under-consideration.

Talks are underway with private companies that own lithium assets in Australia. In some cases, ownership is fragmented, with some stakeholders looking to offload stakes while others remain hesitant.

“So these discussions are taking time. But due diligence is on in Australia too,” the official said.

Meanwhile, Coal India is planning a capital expenditure of about ₹18,000 crore for FY25, and is keen to expand beyond coal and into critical minerals.