ONGC Videsh, Oil India, and Khanij Bidesh India Ltd. (KABIL) have entered into a preliminary agreement with International Resources Holding RSC, a UAE-based company, to jointly acquire and develop global projects focused on critical minerals.
This collaborative venture aims to strengthen the supply of essential minerals necessary for energy transition technologies. In a statement, ONGC Videsh emphasized that the partnership is designed to combine the expertise, resources, and networks of the participating organizations to explore opportunities that are beneficial to all parties involved.
“Through this alliance, we aim to achieve operational excellence, maximize our collective potential, and secure a reliable supply of critical energy minerals essential for the future,” the statement noted. The agreement highlights a framework of cooperation in key areas, including the identification of promising mineral projects worldwide, conducting joint due diligence on these ventures, and managing potential risks associated with exploration and development.
Furthermore, the deal lays out a long-term offtake strategy, ensuring that all parties involved have access to the minerals they need to support their domestic and international energy goals. The push for securing critical minerals comes at a time when many nations, including India and the United States, are increasingly aware of the growing demand for these materials.
The need for a resilient and reliable supply chain for critical minerals, such as lithium, cobalt, and rare earth elements, has become more urgent, especially as the world shifts towards renewable energy and battery technologies. Currently, China dominates the global supply of many of these minerals, and countries around the world are seeking to diversify their sources to reduce reliance on any single nation.
Renewable energy technologies, including solar panels, wind turbines, and electric vehicle batteries, all require a steady supply of critical minerals. The rapid rise in demand for these technologies has driven the need for new sources of these essential materials. However, developing a secure and sustainable supply chain is a complex and costly endeavor that involves long-term planning, exploration, and investment.
For India, this agreement is a step toward reducing its dependence on imports and gaining more control over its energy future. By partnering with international players like International Resources Holding RSC, Indian companies are positioning themselves to take advantage of emerging opportunities in the critical minerals sector.
Additionally, the collaboration aligns with India’s broader goals of boosting its renewable energy capacity and becoming a global leader in clean energy technologies. The signing of this preliminary pact represents a significant move toward enhancing global cooperation in the exploration and development of critical minerals, which are becoming increasingly essential to energy security and the transition to cleaner energy sources.
