Nalco Explores Rare Earth Mining and Lithium Stake to Strengthen India's Mineral Security
State-owned National Aluminium Company Ltd (Nalco) is actively considering entering the mining of rare earth elements (REEs). The company's bid advisor is currently conducting due diligence on domestic auctions for REEs, magnesium, and chromite blocks. This strategic move signals Nalco's diversification beyond its traditional focus on bauxite and alumina.
Brijendra Pratap Singh, the Chairman-cum-Managing Director (CMD) of Nalco, made this announcement on Monday. He explained that the bid advisor will assess mine viability, optimal acquisition premiums, and participation in upcoming auctions. "The bid advisor will assess if we should participate in domestic auctions of REEs," Singh stated clearly.
Targeting High-Value Critical Minerals for Key Industries
Nalco's new direction targets high-value critical minerals essential for electronics, defence, renewables, and electric vehicles. Rare earth elements play a crucial role in manufacturing magnets for wind turbines, EV motors, and missile guidance systems. India currently depends heavily on imports with negligible domestic output.
The country views achieving self-reliance in REEs as a key component of the Atmanirbhar Bharat initiative. This move also aims to reduce China's dominant 80 percent share of the global market, especially amid ongoing US-China trade tensions.
Simultaneous Pursuit of Lithium Stake in Australia
In parallel, Nalco is conducting due diligence for acquiring a stake in an operational lithium mine in Australia. This potential acquisition would occur through Khanij Bidesh India Ltd (KABIL), a joint venture between Nalco, Hindustan Copper Ltd, and Mineral Exploration and Consultancy Ltd. All three entities are public sector undertakings under the Ministry of Mines.
The stake purchase would ensure a minimum guaranteed offtake of lithium for import to India. This action would bolster domestic supply for EV batteries and renewable energy projects, addressing global shortages. "The due diligence is going on," Singh explained regarding this initiative.
Lithium serves as a cornerstone of the clean energy transition worldwide. Supply constraints have emerged as demand surges for India's electric vehicle push and net-zero goals. Nalco currently holds a 40 percent stake in KABIL and plans to potentially raise it to 50 percent. This increased investment would help fund overseas acquisitions of critical minerals.
Focus on Existing Operations and Expansion Projects
Singh emphasized that Nalco remains committed to maximizing its current operations while pursuing new ventures. The company has prioritized maximizing volumes, cutting costs, and ensuring customer satisfaction through 2026. It is also fast-tracking key expansion projects during this period.
"Our first priority is to see our existing operations operate to the fullest capacities. We will maximize our volumes and reduce our costs. Customer satisfaction is one area where we have to focus -- be it quality, packaging or cost -- and align all our operations as per customer requirements," the CMD elaborated.
Regarding expansion plans, Singh confirmed that the fifth stream refinery would be commissioned in June 2026, making it the "topmost priority." He added, "We also target to start the Pottangi bauxite mines in June 2026." The official further outlined the next phase of expansion involving a 0.5 million tonne smelter capacity along with a 1,080 MW power plant.
National Aluminium Company Ltd operates as a 'Navratna' public sector undertaking. It stands as one of India's leading integrated complexes in the aluminium value chain. The company's operations encompass bauxite mining, alumina refining, aluminium smelting, power generation, and coal mining activities.
