India's state-controlled mining giant is quietly positioning itself at the doorstep of the world's third-largest lithium reserves. Coal India, the planet's biggest coal producer, is weighing the acquisition of a Canadian firm's Chilean subsidiary that holds lithium assets — a step that would mark New Delhi's most ambitious push yet into the critical minerals arena. Main Developments Two sources with direct knowledge of the negotiations said Coal India is considering buying the Chile-focused lithium unit of Canada's Wealth Minerals. This represents one of India's most consequential attempts to secure overseas lithium, the essential ingredient for electric vehicle batteries and grid-scale energy storage. An initial milestone has already been reached: Coal India and Kuska Minerals, Wealth Minerals' Chilean arm, have jointly filed for a lithium extraction licence with the Chilean government. One source stressed that the acquisition decision hinges entirely on that licence being granted, saying "once we get the licence, we will decide what we will do ahead." Read also: Why India's rating masks a youth job crisis Negotiations have stretched for months, with the second source revealing that Coal India is in the final stages of talks to buy the unit. However, the deal cannot close until the licence materialises. The application was submitted in October 2025, but Chile's recent change of government has slowed the review process. If a full acquisition proves unworkable, Coal India could pivot to forming a joint venture with Wealth Minerals instead. The ownership split, structural details, and investment commitments for that alternative remain undecided, the sources noted. Background India's track record in securing critical minerals abroad has been thin. Before this potential deal, the country had managed only a single overseas lithium exploration and mining agreement — five blocks in Argentina secured in 2024. That scarcity underscores how far New Delhi must go to catch up. Chile's strategic value is immense. According to the U.S. Geological Survey, the country holds roughly 13 million metric tons of lithium resources, ranking third worldwide behind Argentina and Bolivia. Wealth Minerals also operates two additional lithium projects in Chile beyond the one tied to Coal India, according to its corporate website. Reuters reported in April that Coal India was already in discussions with Wealth Minerals about a potential joint venture, though the acquisition angle has only now come to light. Neither company has responded publicly to requests for comment. Why It Matters The stakes extend far beyond a single corporate transaction. India has been actively pushing state-owned enterprises to acquire overseas mineral assets as part of a broader strategy to reduce dependence on China-dominated supply chains for critical materials. New Delhi has already signed critical minerals cooperation agreements with Argentina, Australia, and Japan, and is exploring broader partnerships with Peru and Chile. This year alone, India inked agreements with Germany, Brazil, and Canada aimed at improving access to technology, expertise, and mineral partnerships — making the Coal India move a logical extension of that diplomatic push. What's Next All eyes now turn to the Chilean government's decision on the joint licence application. The timeline remains uncertain given the administrative transition in Santiago, but the licence is the single gatekeeper for everything that follows. Once granted, Coal India must choose between a straight acquisition and a joint venture with Wealth Minerals. Both paths remain open, and the company's decision will signal the level of risk and commitment India is prepared to make in its quest for energy security.