Indian Companies' Lithium Refinery Projects Abroad: Complete Strategic Analysis

Why Indian Companies Are Expanding Lithium Refinery Operations Globally

India's pursuit of energy independence and electric vehicle manufacturing supremacy has catalyzed an unprecedented expansion into international lithium refinery projects. As the nation targets 30% electric vehicle penetration by 2030 and net-zero emissions by 2070, Indian companies are strategically acquiring lithium assets abroad to secure supply chains for clean energy technologies.

With China controlling approximately 75-86% of global lithium refining capacity, India's strategic pivot toward overseas lithium projects represents both an economic necessity and a geopolitical imperative. This comprehensive guide explores how Indian enterprises are establishing refinery operations, securing mineral rights, and building processing capabilities across multiple continents.

Understanding Lithium Refining: The Foundation of Battery Manufacturing

What Is a Lithium Refinery, and Why Does It Matter?

A lithium refinery transforms raw lithium-bearing materials—whether from hard rock mines or salt brine deposits—into battery-grade compounds with 99.5% or higher purity. These ultra-pure materials become the foundation for lithium-ion batteries powering electric vehicles, renewable energy storage, and consumer electronics.

The refining process involves complex chemical operations, including:

• Beneficiation: Separating valuable lithium minerals from waste rock

• Hydrometallurgy: Using chemical solutions to extract lithium

• Crystallization: Purifying lithium compounds to battery-grade specifications

• Quality control: Ensuring trace contaminants remain below critical thresholds

India currently imports nearly 100% of its lithium supply, creating significant vulnerabilities in its clean energy transition strategy and generating substantial foreign exchange outflows.

KABIL: India's Government-Led International Lithium Acquisition Strategy

How KABIL Is Securing Overseas Lithium Assets

Khanij Bidesh India Ltd (KABIL), established as a joint venture among National Aluminium Company Ltd, Hindustan Copper Ltd, and Mineral Exploration and Consultancy Ltd, spearheads India's overseas critical mineral acquisition strategy.

KABIL's primary mission encompasses identifying, exploring, acquiring, developing, and processing strategic minerals from international sources to supply Indian industries.

KABIL's Argentina Lithium Exploration Project

In a landmark development, KABIL signed a 2 billion-rupee ($24 million) lithium exploration agreement in January 2024 with Argentina's state-owned enterprise for five lithium blocks in Catamarca Province.

Project Details

• Location: Catamarca Province, Argentina's lithium-rich triangle region

• Area: 15,703 hectares across five blocks: Cortadera-I, Cortadera-VII, Cortadera-VIII, Cateo-2022-01810132, and Cortadera-VI

• Type: Brine-type lithium deposits

• Investment: $24 million initial exploration funding

• Rights: Exclusive exploration and commercial production development

KABIL expects to complete detailed exploration within two years, with confidence in finding significant lithium deposits given the proximity to operational Chinese mines in the region.

Strategic Significance: Argentina ranks as the world's second-largest holder of lithium resources, third-largest in reserves, and fourth-largest producer globally, making it a crucial partner for India's lithium security.

KABIL's Australian Lithium Partnership

Australia, producing approximately 47% of the global lithium supply, represents KABIL's second major international focus area. KABIL has signed a Memorandum of Understanding with Australia's Critical Mineral Office under the Department of Industry, Science and Resources for joint due diligence on lithium and cobalt projects.

Australian Partnership Advantages

• Access to the world's largest lithium production infrastructure

• Similar hard rock geology to India's domestic deposits

• Established mining regulatory frameworks

• Technology transfer opportunities for processing expertise

• Alignment with democratic governance standards under the Minerals Security Partnership

The partnership facilitates long-term investment decisions and off-take arrangements ensuring sustainable lithium and cobalt supply for Indian industries.

KABIL's Chile Lithium Exploration Initiatives

KABIL has submitted expressions of interest responding to Chile's government requests for information regarding lithium exploration, extraction, and processing projects. Chile's position within the "Lithium Triangle" alongside Argentina and Bolivia gives it strategic importance, though recent nationalization policies have created some uncertainty for international investors.

Private Sector Lithium Refinery Initiatives by Indian Companies

Lohum: India's First Battery-Grade Lithium Refinery

Lohum, a sustainable critical minerals producer, established India's first battery-grade lithium refinery with 1,000 metric tonnes annual production capacity in 2025.

Technological Innovation: Lohum's refinery employs pioneering dual-feedstock technology, capable of processing both:

1. Spodumene concentrate from mining operations

2. Black mass from recycled lithium-ion batteries

The company achieves recovery rates exceeding 90% compared to industry averages of 60-70%, with purity levels of 99.8% advancing toward 99.99%.

Market Position: Lohum currently refines more than 90% of all lithium processed in India, positioning it among the world's largest lithium refiners outside China.

Global Expansion: Lohum signed a joint venture with American Metals and ReElement Technologies in September 2024 to construct a recycling facility in the United States, with additional European market expansion plans.

Vardhaan Lithium: Integrated Refinery and Battery Production Hub

Vardhaan Lithium is developing India's first integrated lithium refinery and lithium-ion battery production facility in Nagpur, featuring 60,000 tonnes per year of refining capacity and 20 GWh per year of battery output.

Strategic Approach

• Technology partnerships with United States and European firms

• Mineral sourcing through Zimbabwe co-investments

• Vertically integrated ecosystem linking refining to cell production

• Focus on creating complete value chain from raw material to finished batteries

The Nagpur facility represents India's ambition to move beyond simple assembly operations toward comprehensive battery manufacturing capabilities.

Shree Cement: Entry Into Lithium Refining

Shree Cement is negotiating with an Australian firm for technical assistance to establish a lithium refinery requiring investment between $600 and $700 million.

The cement manufacturer's diversification into lithium processing demonstrates how traditional industrial companies recognize strategic opportunities in the energy transition economy. Shree Cement is seeking Australian expertise for both bidding on domestic lithium blocks and establishing refining infrastructure.

Manikaran Lithium: Gujarat-Based Refinery Initiative

Manikaran Lithium, an arm of New Delhi-based Manikaran Power Ltd., is establishing a proposed lithium refinery in Gujarat to produce battery-grade lithium hydroxide.

Business Model:

• Source high-quality spodumene concentrate internationally

• Utilize locally sourced reagents within India

• Produce battery-grade lithium hydroxide for domestic battery manufacturers

• Position India as a global refining hub for international lithium minerals

Why Indian Companies Are Establishing Lithium Refineries Abroad

Strategic Drivers for International Expansion

1. Supply Chain Security China's dominance of 75-86% of global refining capacity creates significant vulnerabilities for countries pursuing electric vehicle and renewable energy goals. India's overseas lithium projects reduce dependence on single-source suppliers.

2. Technology Acquisition Partnerships with Australian, American, and European firms provide access to advanced processing technologies, operational expertise, and best practices unavailable domestically.

3. Resource Access With limited domestic lithium reserves only recently discovered, international projects provide immediate access to proven resources while domestic exploration continues.

4. Geopolitical Alignment India participates in the Minerals Security Partnership alongside Australia, Canada, the United States, and European Union members, facilitating collaborative approaches to critical mineral supply chains.

5. Cost Competitiveness Establishing refineries near mining operations in Argentina or Australia reduces transportation costs and enables faster market response compared to shipping raw materials to India for processing.

6. Market Positioning Early establishment of overseas refining capabilities positions Indian companies as preferred partners for resource-rich nations seeking to add value through midstream processing rather than merely exporting raw materials.

Geographic Focus: Where Are Indian Companies Building Lithium Refineries?

Latin America: Argentina and Beyond

Argentina's Catamarca Province

• Part of the lithium-rich "Lithium Triangle"

• Brine-type deposits requiring specialized extraction techniques

• Relatively open to foreign direct investment

• Lower geopolitical risks compared to some alternatives

Bolivia Discussions India has engaged in preliminary discussions with Bolivia regarding lithium asset acquisition, though Bolivia's more restrictive investment policies present challenges.

Chile Considerations Chile's recent mining strategy requires new lithium projects to be public-private partnerships with state majority ownership, creating complexity for international investors.

Australia: Hard Rock Lithium Leadership

Australia's advantages for Indian lithium refinery partnerships include:

• World's largest lithium production (47% global share)

• Established mining infrastructure and expertise

• Similar hard rock geology to India's domestic discoveries

• Democratic governance aligned with India's strategic interests

• Membership in Minerals Security Partnership

• Advanced technology available for transfer

African Opportunities

Indian companies, including NMDC and Hindustan Copper through KABIL, are exploring African lithium and critical mineral opportunities, though specific project announcements remain limited.

Technology Transfer and Capability Development

Building Indigenous Refining Expertise

India seeks technical assistance in beneficiation, hydrometallurgy, leaching, and pyrometallurgy processes essential for separating lithium from ore.

International Partnership Models

1. Joint Ventures: Combining Indian capital with foreign technology

2. Licensing Agreements: Acquiring proven processing technologies

3. Technical Services Contracts: Engaging international experts for startup and optimization

4. Training Programs: Developing Indian talent through knowledge transfer

5. Research Collaborations: Co-developing next-generation extraction methods

Overcoming China's Technology Export Restrictions

In January 2025, China implemented restrictions on exporting lithium refining technology and equipment for advanced lithium iron phosphate (LFP) battery production, areas where China controls 95% or more of global capacity.

These restrictions intensify India's need for partnerships with Western technology providers and accelerate domestic research and development initiatives.

Economic Impact and Market Opportunities

Domestic Value Creation Through Overseas Refineries

Battery-grade lithium compounds command premiums of 30-50% over technical-grade materials, creating significant value-addition opportunities. As India's electric vehicle market grows at a projected compound annual growth rate of 43.13% from 2022 to 2030, domestic refining capabilities—whether located in India or abroad—capture substantially more value than simply importing finished materials.

Foreign Exchange Savings

1. India's lithium market approached $0.88 billion in 2024 with projected annual growth of 16-22%, reaching a multi-billion-dollar scale by 2030.

2. Developing overseas refining operations reduces import dependency and conserves foreign exchange, with estimates suggesting potential savings of $300-350 million annually by 2025 even with partial domestic production.

Employment and Knowledge Clusters

• Lithium refining creates high-value employment in chemistry, metallurgy, process engineering, and specialized manufacturing. Knowledge developed through overseas operations transfers back to India, creating domestic expertise clusters supporting long-term competitiveness.

Challenges Facing Indian Lithium Refinery Projects Abroad

Technical Complexity and Timeline

Analysts estimate it typically takes four to seven years from discovery to commercial production for lithium mines, with refinery commercialization requiring additional time.

Key Technical Challenges:

• Achieving consistent 99.5%+ purity levels

• Managing different ore types (hard rock vs. brine)

• Scaling from pilot to commercial operations

• Optimizing recovery rates while controlling costs

• Meeting stringent environmental standards

Capital Requirements

Establishing lithium refineries requires substantial upfront investment:

• Refinery construction: $600-700 million for medium-scale facilities

• Exploration and development: $24 million+ for significant deposit evaluation

• Working capital: Significant funds for feedstock procurement and operations

• Infrastructure: Supporting facilities, utilities, and logistics

Geopolitical Considerations

1. Resource Nationalism: Countries like Chile have moved toward greater state control of lithium resources, potentially limiting foreign investment opportunities or requiring complex partnership structures.

2. Supply Chain Competition: Chinese companies have established dominant positions in many lithium-producing regions, creating competitive pressure for Indian entrants.

3. Regulatory Variations: Each jurisdiction presents unique permitting, environmental, labor, and operational requirements requiring specialized expertise.

Market Volatility

• Lithium prices experienced extreme volatility, with significant increases in 2021-2022 followed by an over 80% decline due to oversupply, particularly from Chinese production. This price instability complicates project economics and investment decisions.

Government Support and Policy Framework

Production-Linked Incentive Schemes

• India's government has allocated incentives under the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage, creating downstream demand supporting lithium refining investments.

Critical Minerals Auction

• The government launched critical mineral auctions in 2023, opening lithium mining to private sector participation for the first time. This policy shift encourages vertically integrated operations where mining, refining, and battery manufacturing connect seamlessly.

Minerals Security Partnership

India participates in the Minerals Security Partnership, which aims to accelerate the development of diverse and sustainable critical energy mineral supply chains through targeted financial and diplomatic support for strategic projects meeting high environmental, social, and governance standards.

This multilateral framework facilitates Indian companies' overseas investments through:

• Diplomatic support for investment negotiations

• Risk mitigation mechanisms

• Technology sharing arrangements

• Standards harmonization

• Collective bargaining power

Future Outlook: What's Next for Indian Lithium Refinery Projects Abroad?

Expansion Trajectory Through 2030

Near-Term (2024-2026):

• KABIL completes detailed exploration in Argentina

• First commercial lithium extraction from overseas operations begins

• Domestic refineries scale up operations

• Additional partnership announcements with Australian firms

Medium-Term (2027-2029):

• Commercial production from KABIL's Argentina projects

• Multiple Indian companies operate refineries domestically and internationally

• India achieves 15-20% self-sufficiency in lithium supply

• Technology transfer enables domestically-designed refining processes

Long-Term (2030+):

• India establishes position as regional lithium processing hub

• Exports of refined lithium products to neighboring countries

• Integration with domestic battery gigafactories

• Reduced dependency on Chinese supply chains

Emerging Technologies and Opportunities

1. Direct Lithium Extraction (DLE): Next-generation extraction technologies promise faster, more environmentally friendly processing of brine deposits. Indian companies investing in DLE partnerships gain competitive advantages.

2. Battery Recycling Integration: Lohum's dual-feedstock technology demonstrates how recycling and primary production can be integrated, creating circular economy advantages.

3. Solid-State Batteries: As battery technology evolves toward solid-state designs potentially using different lithium compounds, flexible refining capabilities become increasingly valuable.

FAQ's

Q: Which Indian company has the largest overseas lithium project?

• KABIL holds India's largest overseas lithium project through its January 2024 agreement in Argentina's Catamarca Province, covering 15,703 hectares across five exploration blocks with exclusive rights for development and commercial production.

Q: Why are Indian companies investing in lithium refineries abroad instead of only in India?

• Indian companies pursue overseas refinery projects for several strategic reasons: immediate access to proven lithium resources while domestic deposits remain under exploration, technology transfer from established mining jurisdictions like Australia, supply chain diversification reducing dependence on China, proximity to mining operations lowering transportation costs, and partnerships with resource-rich nations seeking value-added processing rather than raw material exports.

Q: How much lithium does India need for its electric vehicle targets?

• India requires approximately 300,000 tons of lithium carbonate cumulatively to meet its electric vehicle and energy storage targets, with annual consumption expected to reach substantial levels as the country pursues 30% EV penetration by 2030 and net-zero emissions by 2070.

Q: What is KABIL and what does it do?

• Khanij Bidesh India Ltd (KABIL) is a joint venture established by the Indian government among three public sector enterprises—National Aluminium Company, Hindustan Copper, and Mineral Exploration and Consultancy Ltd—to identify, acquire, develop, and commercialize strategic mineral assets internationally for India's supply security.

Q: Where is India's first battery-grade lithium refinery located?

• India's first battery-grade lithium refinery was established by Lohum in 2025 with 1,000 metric tonnes annual production capacity, capable of processing both mined spodumene concentrate and recycled battery black mass to achieve 99.8%+ purity levels.

Q: How long does it take to develop a lithium refinery from exploration to production?

• Lithium projects typically require four to seven years from initial discovery to commercial mining production, with additional time needed for refinery development, technology validation, and scaling to full commercial operations. KABIL's Argentina project expects detailed exploration completion within two years before advancing to production phases.

Q: What challenges do Indian companies face in overseas lithium projects?

• Key challenges include the technical complexity of achieving battery-grade purity specifications, substantial capital requirements of $600-700 million or more for refinery construction, long development timelines averaging 4-7 years, geopolitical considerations including resource nationalism, competition from established Chinese operators, regulatory variations across jurisdictions, and lithium price volatility affecting project economics.

Q: Which countries are Indian companies targeting for lithium refineries?

• Indian companies primarily focus on Argentina (through KABIL's Catamarca Province projects), Australia (via partnerships with mining firms and government agencies), Chile (expressions of interest submitted), and exploratory discussions with Bolivia and African nations for critical mineral assets.

Q: How does India's overseas lithium strategy compare to China's approach?

• While China focused on early, aggressive acquisition of lithium assets globally and built dominant refining capacity domestically, India is pursuing a later-stage strategy combining overseas exploration and mining rights with technology partnerships from Western nations, positioning itself as an alternative supplier aligned with democratic governance standards under frameworks like the Minerals Security Partnership.

Q: What role do private companies play versus government entities?

• Government-backed KABIL leads overseas exploration and mining rights acquisition, while private companies like Lohum, Vardhaan Lithium, Shree Cement, and Manikaran Lithium focus on refinery technology development, processing operations, and integration with battery manufacturing. This public-private collaboration combines government diplomatic resources with private sector operational efficiency.

India's expansion into international lithium refinery projects represents far more than resource acquisition—it embodies a comprehensive strategy for energy security, industrial competitiveness, and geopolitical positioning in the clean energy transition.

With India targeting a 30% electric vehicle share in new vehicle sales, 500 GW of non-fossil fuel energy capacity by 2030, and net-zero emissions by 2070, lithium supply chains become critical national infrastructure requiring diversified, secure, and technologically advanced sourcing strategies.

The multi-faceted approach combining KABIL's government-backed overseas exploration, private sector refinery development, technology partnerships with Western nations, and participation in multilateral frameworks like the Minerals Security Partnership positions India to reduce Chinese supply chain dependence while building domestic capabilities.

As Indian companies advance projects in Argentina, Australia, and potentially Chile and Africa, they simultaneously develop technical expertise, create high-value employment, generate foreign exchange savings, and establish India as an alternative processing hub for the global battery supply chain.

The road ahead presents substantial challenges—technical complexity, capital requirements, long development timelines, and market volatility—yet the strategic imperative remains clear. India's clean energy ambitions, electric vehicle targets, and economic growth depend fundamentally on secure, affordable, and sustainable lithium supply chains that only overseas refinery investments can provide at the required scale and timeline.

Success in these international lithium projects will determine whether India emerges as a leader in the global energy transition or remains dependent on external suppliers for critical battery materials. The investments, partnerships, and capabilities being built today lay foundations for India's energy security and industrial competitiveness throughout the coming decades.

Last Updated: November 2025 Sources: Ministry of Mines India, KABIL, Industry Reports, Mining Publications

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