India is negotiating with Sri Lanka to acquire graphite mines, eyeing a crucial resource essential for the burgeoning battery industry. Graphite, the primary material used for anodes in lithium-ion and other batteries, is seeing a steady rise in demand.
Discussions between the Indian and Sri Lankan governments are in the preliminary stages, according to sources familiar with the matter.
While details are sparse, the potential acquisition underscores India's strategic move to secure vital mineral resources abroad. The quality of graphite in Sri Lanka is notably high, making it an attractive target for acquisition.
Graphite is listed among the 30 critical minerals identified by the Indian government last year.
To bolster its mineral asset portfolio, India has tasked public sector enterprises, including Coal India, NMDC, and ONGC Videsh Ltd (OVL), to actively seek critical mineral resources overseas.
OVL, the overseas investment arm of the state-owned Oil and Natural Gas Corporation, is expected to play a significant role in these efforts.
Further bolstering this initiative, Khanij Bidesh India Ltd (KABIL) has been established as a joint venture by three public sector entities: National Aluminium Company Ltd (Nalco), Hindustan Copper Ltd (HCL), and Mineral Exploration and Consultancy Ltd (MECL).
KABIL's mission is to scout for and secure mineral assets abroad.
In addition to graphite, India is also exploring collaborations with Chile to gain access to copper and lithium mineral assets.
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