In a significant move to secure a stable and sustainable supply of critical minerals, ONGC Videsh, along with Oil India Ltd. (OIL) and Khanij Bidesh India Ltd. (KABIL), has signed a Memorandum of Understanding (MoU) with the International Resources Holding RSC Ltd. (IRH) based in the UAE. The MOU was signed on 10 September 2024, marking the beginning of a global collaboration aimed at strengthening the critical mineral supply chain. The agreement aims to identify, acquire, and develop critical mineral projects not just in India but globally, a move that aligns with India’s growing focus on energy security and the long-term sustainability of its resources.

Critical minerals such as lithium, cobalt, and nickel are vital for the transition to a clean energy economy, and securing a stable supply chain for these resources has become a top priority for governments worldwide. The partnership between ONGC Videsh, OIL, KABIL, and IRH UAE seeks to capitalize on their combined expertise, resources, and global networks to pursue opportunities in the critical energy mineral sector. This collaboration will help meet the demands of sectors like renewable energy, electric vehicle (EV) manufacturing, and battery storage systems.

The Objectives of the MoU

The Memorandum of Understanding lays down a clear framework for cooperation between the participating companies. The primary goals of the agreement include:

Project Identification: Locating and evaluating critical mineral resources around the globe.

Joint Due Diligence: Conducting detailed assessments and feasibility studies to ensure operational and financial viability.

Risk Management: Managing risks related to exploration, acquisition, and development of critical minerals projects.

Offtake Strategy: Establishing a long-term offtake strategy to secure stable supplies of critical minerals essential for India’s energy and technological industries.

By combining the strengths of ONGC Videsh, OIL, KABIL, and IRH, the partnership is expected to significantly contribute to India’s National Energy Security. The MoU also includes a commitment to developing sustainable and responsible mining practices, ensuring that the extraction of these vital minerals does not negatively impact the environment.

ONGC Videsh: Leading the Way in Global Energy Security

ONGC Videsh, a wholly owned subsidiary of ONGC—India’s flagship National Oil Company (NOC)—has been at the forefront of global exploration and production (E&P) operations. As India's largest international oil and gas E&P company, ONGC Videsh operates 32 assets in 15 countries and produced over 10.518 million metric tonnes of oil equivalent gas (MMtoe) in the fiscal year 2024. This positions ONGC Videsh as a crucial player in securing India’s energy supply, particularly in oil, gas, and now critical minerals.

Oil India Ltd. (OIL), another Navaratna Central Public Sector Enterprise, brings to the table its extensive experience in the exploration and production of hydrocarbons. The collaboration between ONGC Videsh, OIL, and KABIL is strategically aligned with India’s ambition to reduce its reliance on external sources for critical energy materials.

KABIL: Pioneering Critical Mineral Exploration

Khanij Bidesh India Ltd. (KABIL), a joint venture company between NALCO, HCL, and MECL, was established to secure strategic mineral resources for India. With its focus on acquiring and developing critical mineral assets, KABIL has been actively involved in mineral exploration and resource development around the world. The signing of the MoU with IRH UAE further strengthens KABIL’s role in ensuring India’s energy security and promoting the use of green technologies.

The UAE-based International Resources Holding (IRH) brings its global expertise in resource acquisition and development, enhancing the collaboration’s ability to secure critical energy minerals globally. This MoU is expected to pave the way for joint ventures in mineral-rich regions, with a special focus on the extraction and processing of minerals essential for electric vehicle (EV) production, renewable energy technologies, and battery manufacturing.

Global Energy Transition and Critical Minerals

The world is undergoing a significant energy transition, with a shift towards renewable energy sources and the development of clean technologies. Critical minerals, such as lithium, cobalt, nickel, and rare earth elements, are essential components of batteries, wind turbines, solar panels, and electric vehicles (EVs). However, the supply of these minerals is limited, and their demand is expected to skyrocket in the coming decades.

To address this growing demand, countries like India are seeking to diversify their sources of critical minerals. The signing of this MoU demonstrates a proactive approach by ONGC Videsh, OIL, KABIL, and IRH in securing a stable supply chain for these minerals. The collaboration will help India reduce its reliance on imported critical minerals and establish a sustainable supply for its burgeoning renewable energy and EV industries.

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