New Delhi, India – In a strategic move to secure essential raw materials for its burgeoning clean energy sector, India is engaging in talks with Sri Lanka to acquire graphite mines in the island nation. This development comes in response to the steadily increasing demand for graphite, a crucial material predominantly used for anodes in lithium-ion and other advanced batteries.
Sources from within the Indian government have confirmed that initial discussions with Sri Lankan officials have commenced, though they have refrained from divulging detailed information, citing the preliminary nature of the negotiations. The graphite deposits in Sri Lanka are renowned for their high quality, making them a highly sought-after resource for battery production and other industrial applications.
Graphite is one of the 30 critical minerals identified by the Indian government last year, underscoring its strategic importance. Recognizing the urgency of securing these minerals, the Indian government has tasked several public sector companies, including Coal India, NMDC, and ONGC Videsh Ltd (OVL), to actively pursue critical mineral assets abroad. OVL, the international investment arm of the state-owned Oil and Natural Gas Corporation, is already exploring opportunities to expand its global footprint in this sector.
Additionally, Khanij Bidesh India Ltd (KABIL) has been established as a joint venture to spearhead the search for mineral assets overseas. KABIL, jointly owned by National Aluminium Company Ltd (Nalco), Hindustan Copper Ltd (HCL), and Mineral Exploration and Consultancy Ltd (MECL), is playing a pivotal role in India’s strategic mineral acquisition efforts.
India’s pursuit of critical minerals extends beyond graphite. The country is also exploring partnerships with Chile to secure access to copper and lithium resources. These minerals, along with nickel and cobalt, are essential components in the rapidly expanding clean energy technologies, including wind turbines, electricity networks, and electric vehicles.
The acquisition of Sri Lankan graphite mines represents a significant step in India’s broader strategy to ensure a stable supply of critical minerals necessary for its transition to a clean energy economy. As the global demand for clean energy technologies continues to surge, securing reliable sources of essential materials like graphite will be crucial for India to maintain its competitive edge and achieve its sustainability goals.
