The top 3 metal and mining state-owned companies are in the process of forming a JV to boost India's drive to procure reserves of strategic minerals like lithium and cobalt to power the country's move into electric vehicles.
The companies involved are, National Aluminium Company (Nalco), Hindustan Copper (HCL) and Mineral Exploration Corporation Ltd (MECL) as JV Partners with a shareholding pattern of 34:33:33 respectively. To begin with, an investment of Rs.100 cr has been set aside as an initial equity base of the grand JV.
The proposal has already been cleared by the boards of all 3 companies and is expected to officially get into the agreement by next one week. The formation of JV is in line with the expectation of government to push its drive to build up strategic reserves of these precious minerals to push e-mobility in India. The teams from these companies have visited countries like Peru, Bolivia, and Chile, which are rich in such strategic minerals and expects the first acquisition is 6 months.
The mission 2030 of full electrification of the vehicle fleet is the main agenda of current government and acquisition of these minerals attains top priority, as India does not have reserves of these minerals to meet the demand of teeming billion-plus populations. Niti Aayog has already approved this JV, and this move will give the required push to Modi government’s efforts to promote e-mobility in India since lithium and cobalt are key minerals used to make batteries that power electric vehicles.
The trio forming the JV have appointed German consultancy DMT as an advisor for the project to advise them on prospective reserves, foreign government rules and regulations, and help scout them for local mining partners.
Image Source: Inc42
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