NMDC Explores Lithium Mining and Processing Opportunities in Russia via Talks with Rosatom

Indian state-run miner NMDC Ltd is exploring potential lithium mining and processing investments in Russia, including preliminary discussions with the Russian state nuclear company Rosatom. According to sources familiar with the matter, NMDC officials visited Russia last month for a conference and held meetings with Rosatom and other Russian entities to examine potential opportunities in the sector.

The discussions between NMDC and Rosatom remain preliminary, and sources noted that the talks are confidential. A Rosatom spokesperson stated that the Russian company is not currently engaged in talks with NMDC, while NMDC did not respond to requests for comment regarding the meetings.

The outreach to Russia aligns with NMDC's stated global mineral diversification strategy. Last year, the company announced it was exploring acquisition opportunities for critical minerals across Africa, Australia, and South America. To support these efforts, NMDC has formed a 12-member team to carry out due diligence on potential critical mineral assets.

India's domestic processing capacity for critical minerals such as lithium remains at a nascent stage, leaving the country heavily dependent on imports. Currently, India meets its lithium demand primarily through imports from China, Vietnam, and Ecuador. To address this reliance, Prime Minister Narendra Modi's cabinet recently approved an incentive policy worth 28.14 billion rupees ($297 million) aimed at boosting domestic processing of lithium and nickel.

Although Russia possesses large lithium reserves, it currently has no commercial production. However, Rosatom and Russian miner Nornickel are developing the country's largest lithium deposit through their Polar Lithium joint venture, with commercial production expected to begin by 2030. The US imposed sanctions on Polar Lithium and several other Russian entities and individuals early last year.

The second-most advanced lithium project in Russia is Arctic Lithium, a venture owned by private Russian companies developing the Polmostundrovskoye lithium deposit in the Murmansk region, which is also scheduled to begin commercial production by 2030.

The Federation of Indian Mineral Industries noted that Russia could potentially serve as an alternative source for India's future lithium supplies. A spokesperson for the industry body stated that stakeholders should explore opportunities for long-term supply arrangements and encourage Indian companies to engage with Russian counterparts in mining, processing, and refining projects.

"Securing a stable supply of critical minerals like lithium is vital for the long-term growth of India's electric vehicle and battery manufacturing ecosystem. NMDC's exploratory talks in Russia reflect a necessary push toward global diversification in raw material sourcing. As domestic processing capacity develops and government incentives take effect, strategic international partnerships will play a central role in mitigating supply chain risks for Indian industries." — Dr. Shishir Gupta, Founder & CEO, StartupLanes