India has reportedly withdrawn from an important lithium project in Mali due to the escalating political and security risk.
This project has been backed by Rosatom, the Russian state-owned nuclear corporation. It adds a layer of geopolitical concern to India.
The withdrawal of New Delhi’s foreign investment, particularly in volatile but resource-rich regions, is a clear indication that New Delhi has a strategy for aggressively protecting its investments abroad.
The risk of escalating violence in Mali, and its geopolitical implications
Recent military coups in Mali and an Islamist insurgency persisting create a highly-risky operational environment for international entities.
India is a country that has become increasingly concerned with the security of critical supply chains, such as lithium. Lithium, which is essential to the transition from gasoline-powered vehicles to renewable energy, and electric cars, takes priority over potential gains in mineral resources.
Rosatom’s involvement further complicates things. India has historically had strong relations with Russia. However, working alongside an enterprise owned by a government from a nation currently subject to heavy Western sanctions and in a political fragile country adds a layer of risk.
New Delhi is of the opinion that the security and viability of the project on a long-term basis outweighs the benefits to the country of securing a portion of the Mali lithium reserves. This was reported in a Reuters article.
This move is part of a wider reassessment by India of its investment portfolios in the Sahel, with a focus on stability and security in pursuit of resource security globally.
Western nations, such as Britain, France and the United States have warned their citizens that security risks are increasing due to militants linked to al-Qaeda attacking foreign investments and economic assets in this landlocked country.
Rosatom approached Khanij Bidesh India Ltd. and NLC India Ltd., two Indian government entities in the last year to discuss lithium exploration possibilities in Mali.
Mali has emerged as an important producer of lithium (a vital metal for batteries in electric vehicles).
Russia is actively strengthening its relationships with African countries, and has increased military co-operation. It is clear that Russia has strengthened its ties with nations like Mali, Burkina Faso and others.
India’s pivotal strategic move: Securing vital minerals for EV goals
India, the fastest growing major economy in the world, is pushing for the adoption of electric vehicles (EVs). This has created a need for reliable lithium supplies.
The mineral plays a key role in India’s efforts to both meet its rising energy needs and reduce carbon emissions.
Electric vehicles will make up 30% of cars by 2030 and 80% of 2-wheelers.
In light of the current low adoption rates for electric cars (4%), and two-wheelers (6%), a reliable and sustainable source of lithium will be essential to achieving this transformative goal in energy and transportation.
India actively pursues deals in order to gain access to minerals that are essential to its high-tech and energy industries.
Focus is placed on nations with mineral wealth, such as Argentina, Australia and Chile.
In 2024, Khanij Bidesh India Limited partnered with an Argentinean state-owned firm to explore and develop 5 lithium blocks.
The move shows India’s intention to ensure a steady supply of lithium for the manufacture of batteries for electric cars.
India, however, has not yet finalized similar deals for resource access with key nations, in spite of its initial success. This indicates that India needs to continue diplomatic and commercial efforts, to strengthen its mineral security.
The post India withdraws Mali Lithium Project citing Security Risks, Rosatom Complications may be updated as new developments unfold.
This site is for entertainment only. Click here to read more
