Neha Arora
NEW DELHI, Feb 12 (Reuters) – Security risks are prompting India to withdraw from a lithium project in Mali backed by Russian state nuclear company Rosatom, sources said, as New Delhi seeks to protect its investments in the politically unstable West African nation.
Western countries from Britain to France to the United States have urged citizens to leave the landlocked country as security concerns grow amid a battle between al-Qaeda-linked militants targeting economic assets and foreign investment.
Last year, Rosatom approached Indian government-backed Khanij Bidesh India Ltd (KABIL) and NLC India Ltd for lithium exploration in Mali, an emerging producer of the lithium metal critical for the manufacturing of electric vehicle batteries.
“The project was put on hold because we couldn’t spend money on something that might cost us the investment,” one source said.
Two sources directly involved in the decision requested anonymity because discussions are confidential.
India’s mines ministry, KABIL and NLC India did not respond to Reuters’ requests for comment. Rosatom declined to comment.
Russia has been cultivating relations with a range of African countries through military cooperation and other efforts, and has strengthened ties with Mali and Burkina Faso.
India, the world’s fastest-growing major economy, is looking for a stable supply of lithium as it anticipates growing demand for lithium, which is key to reducing carbon emissions from the world’s third-largest emitter.
New Delhi aims to increase the penetration rate of electric vehicles to 30% by 2030 and the penetration rate of two-wheelers to 80% from the current 4% and 6%.
India has recently stepped up efforts to secure deals for key minerals in resource-rich countries such as Argentina, Australia and Chile.
In 2024, KABIL signed an exploration and development agreement with a state-owned Argentinian company to explore and mine five lithium blocks, but has not signed any similar agreement since then.
(Reporting by Neha Arora; Additional reporting by Anastasia Lyrchikova in Moscow; Editing by Mayank Bhardwaj and Clarence Fernandez)