India and Russia are negotiating the development of a lithium and rare earth elements deposit, according to media reports
12 May 18:06
India and Russia are negotiating a preliminary agreement on critical minerals that covers exploration, processing, and technological cooperation, according to two sources familiar with the matter, Reuters reports, as cited by "Komersant Ukrainian".
“The agreement is expected to focus on lithium and rare earth elements, and the governments of the two countries also intend to promote corporate investment, according to sources who declined to be identified because the discussions were not public,” the agency reports.
According to Reuters, the agreement could be signed within two months.
“We have shared the draft of the proposed agreement with our Russian colleagues,” one of the sources said.
The Ministry of Mining, which is negotiating with Russia, did not respond to a Reuters email requesting comment. Russia’s Ministry of Industry and Trade and the office of First Deputy Prime Minister Denis Manturov also did not respond to requests for comment, the agency adds.
India is seeking to reduce its dependence on China, which dominates global supplies of several key minerals and possesses advanced mining and processing technologies, as well as to secure new overseas supplies to support its energy transition and infrastructure development.
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New Delhi has signed agreements on critical minerals with Argentina, Australia, and Japan, and is negotiating with Peru and Chile on broader bilateral agreements that also include critical minerals.
“However, India has had limited success in securing critical mineral assets abroad and has so far signed only one agreement for a lithium exploration and mining project covering five blocks in Argentina in 2024,” Reuters reports.
India may also return to a project by the Russian state nuclear corporation Rosatom to explore for lithium in Mali if the political situation in the West African country stabilizes, one source said.
Project with Rosatom
Previously, India withdrew from the lithium sector in Mali due to security concerns. This project is supported by the Russian state nuclear corporation Rosatom. At the time, New Delhi explained its withdrawal as a desire to protect its investments in the politically unstable West African country.
The project has been suspended because India cannot spend funds on something that could lead to the loss of our investments, one of the sources noted.
Russia is developing relations with a number of African countries, particularly through military cooperation, and has strengthened ties with Mali and Burkina Faso.
India, the world’s fastest-growing major economy, is seeking to secure a stable supply of lithium in anticipation of rising demand for the metal, which is key to reducing carbon emissions in the world’s third-largest emitter.
India has recently stepped up efforts to secure agreements for access to critical minerals in resource-rich countries such as Argentina, Australia, and Chile.
In 2024, KABIL signed an exploration and development agreement with a state-owned company in Argentina for the exploration and extraction of five lithium blocks, but has not signed any similar agreements since then.
As reported, construction of a new gold processing plant began in Mali in June 2025 with Russian support.
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