India Seeks Investment Opportunities in Critical Minerals Extraction from Canada

India is planning to invest in the extraction of critical minerals in Canada. Oil Minister Hardeep Singh Puri announced that a delegation will soon visit Canada to discuss potential collaborations. This announcement followed a meeting with Canadian Minister of Energy and Natural Resources, Tim Hodgson, during India Energy Week. The two countries aim to enhance bilateral energy trade, including Canadian LNG, LPG, and crude oil supplies to India, and refined petroleum products from India to Canada.

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State-owned Oil India Ltd (OIL), under Puri's ministry, is part of a consortium exploring critical minerals like lithium, cobalt, and rare earth elements. These minerals are vital for manufacturing electric vehicle batteries, solar panels, wind turbines, and defence equipment. With China dominating current supplies, there are significant geopolitical risks due to concentrated supply chains. OIL Chairman Ranjit Rath confirmed a delegation will soon visit Canada to explore investment opportunities in mineral extraction.

Energy Security and Supply Diversity

A joint statement from Puri and Hodgson highlighted the importance of energy security and supply diversity. Canada aims to become an energy superpower in both clean and conventional energy sectors. Export diversification is a priority for Canada, while India offers a stable partnership due to its scale and long-term opportunities. The statement also noted India's role as a major player in the global energy landscape.

Canada is expanding its liquefied natural gas (LNG) projects and increasing crude oil production for Asian markets. It is also advancing liquefied petroleum gas (LPG) exports to Asia. As the world's third-largest oil consumer and fourth-largest LNG importer, India remains central to global energy demand growth over the next two decades.

Potential for Clean Energy Collaboration

The ministers acknowledged the potential for cooperation in clean energy value chains. Opportunities exist in renewable energy sectors such as hydrogen, biofuels, sustainable aviation fuel, battery storage, and clean technologies. They also see prospects in electricity systems, energy supply chain resilience, and artificial intelligence applications in the energy sector.

India's position as a major consumer aligns with Canada's role as a reliable supplier. Together, they can ensure stable energy supplies through strengthened trade partnerships. The ministers agreed on deepening long-term partnerships to facilitate increased reciprocal investment in each other's energy sectors.

Puri mentioned that Indian companies might consider participating in planned LNG export terminals to secure energy supplies. The joint statement emphasized the importance of joint commercial and investment partnerships in each other's energy sectors. Canada is swiftly developing energy projects with Asia as a priority region for product supply.

India and Canada will collaborate to promote cooperation across trade in the energy sector, including services. This partnership aims to deepen trade ties and ensure stable and secure energy supplies between the two nations.

With inputs from PTI