Archive · 14 Aug 2026
Why India is struggling to acquire critical mineral assets abroad
India needs special rocks and minerals, called critical minerals, for many important technologies.
To find these minerals, the Indian government created a company called KABIL in 2019.
KABIL travels to other countries to buy parts of mines or to start new mining projects.
So far, its biggest success is in Argentina, where it has bought five areas of land that hold lithium.
In Australia, KABIL tried to buy part of two big lithium mines, but a company from South Korea called POSCO got them first.
A chance to invest in a lithium project in Chile was missed because there was not enough time to finish checking it.
A deal for rare earth minerals in Vietnam also fell apart when the seller changed their mind.
In Africa, KABIL paused its plans in Mali because the country became less safe and stable.
The company told Indian lawmakers that high prices, changing lithium prices, and strong competition make these deals difficult.
India is still looking, with new opportunities being checked in Malawi, Brazil, Canada, Russia, and Indonesia.
India's state-backed KABIL, set up in 2019 to buy critical minerals overseas, has acquired five lithium brine blocks in Argentina but stalled elsewhere.
A consortium led by KABIL lost Australia's Mt Marion and Wodgina lithium mines to South Korea's POSCO, which paid $765 million for a combined 30% stake in Mineral Resources Ltd.
KABIL failed to submit a bid for a high-value lithium brine project in Chile because partner companies' due diligence could not be completed in time.
A proposed 5% stake in rare earth projects in Vietnam's Lai Chau province fell through after the seller withdrew the opportunity.
Due diligence on a Mali lithium project with Uranium One Group was paused over socio-political instability, while KABIL evaluates options in Malawi, Brazil, Canada, Russia, and Indonesia.
- Who
- Khanij Bidesh India Ltd (KABIL), India's overseas critical mineral acquisition joint venture, along with public sector partners including Coal India Ltd, Oil India Ltd, and ONGC Videsh Ltd.
- What
- India's efforts to acquire overseas critical mineral assets, including lithium and rare earths, which have stalled or failed in Australia, Chile, Vietnam, and Mali.
- When
- Events span from KABIL's 2019 incorporation through bids in December 2024 and September 2025; a parliamentary panel report on the setbacks was tabled in Parliament on August 12, 2026.
- Where
- Argentina, Australia, Chile, Vietnam, Mali, and Malawi, with potential investments also evaluated in Brazil, Canada, Russia, and Indonesia.
- Why
- India wants to secure strategic minerals to meet growing domestic demand, but high asset valuations, volatile lithium prices, financial constraints, time limits, and socio-political instability have hampered the deals.
- Company
- Khanij Bidesh India Ltd (KABIL), incorporated in 2019
- Joint venture partners
- National Aluminium Company Ltd, Hindustan Copper Limited, Mineral Exploration & Consultancy Limited
- Argentina footprint
- Five lithium brine blocks in Catamarca province; seven more greenfield blocks under evaluation and two more projects discussed in Jujuy
- Australian bid
- Consortium's revised non-binding offer of $233 million (Sept 2025) for a 20% stake each in Mt Marion and Wodgina mines
- POSCO deal
- $765 million for a 15% stake each in Mt Marion and Wodgina, equivalent to a 30% stake in Mineral Resources Ltd
- Chile lithium bid
- Bid not submitted due to limited time for due diligence by partnering companies
- Vietnam rare earth deal
- Proposed 5% stake in Lai Chau province projects did not materialise as the seller withdrew the opportunity
- Mali lithium project
- Due diligence with Uranium One Group put on hold due to recent socio-political instability in Mali