India pulls out of Russian-backed Mali lithium project over security risks, sources say
Security risks are prompting India to pull out of a lithium project in Mali backed by Russia's state nuclear corporation Rosatom, sources said, as New Delhi seeks to safeguard its investments in the politically unstable West African nation.
Western nations, from Britain and France to the United States, have urged citizens to leave the landlocked nation as security concerns rise in its battle with al Qaeda-linked militants targeting economic assets and foreign investment.
Last year Rosatom approached India's government-backed Khanij Bidesh India Ltd (KABIL) and NLC India Ltd for lithium exploration in Mali, an emerging producer of the metal critical in making batteries for electric vehicles.
"The project is on hold because we cannot be spending on something where there is a chance we will lose our investment," one of the sources said, Reuters reported.
Both sources, who were directly involved in the decision-making, sought anonymity because the discussions were confidential.
Russia has been cultivating ties with a string of African countries, through efforts including military cooperation, and has strengthened relations with Mali and Burkina Faso.
The world's fastest-growing major economy, India has sought a steady supply of lithium in anticipation of rising demand for the metal, key to cutting carbon emissions from the world's third-largest emitter.
New Delhi is targeting 30% electric car penetration and 80% for two-wheelers by 2030, up from 4% and 6% now.
India has recently stepped up efforts for deals to access critical minerals in resource-rich countries such as Argentina, Australia and Chile.
In 2024, KABIL signed an exploration and development pact with a state-owned firm in Argentina to explore and mine five lithium blocks, but has not signed any similar deals since.
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