India’s state-owned mining company NMDC is holding preliminary talks with Rosatom on investing in Russian lithium projects. India is seeking to secure raw materials for its battery and electric vehicle industries and to reduce dependence on imports. Interest is focused on the Kolmozero deposit in Murmansk region, Russia’s largest, which Rosatom is developing jointly with Nornickel.
NMDC representatives visited Russia in October to attend a conference and hold talks with Rosatom. According to Reuters sources, the Indian side is studying opportunities for lithium mining and processing and has also discussed cooperation with other Russian companies. Rosatom said it is not currently holding talks with NMDC.
The Kolmozero deposit holds 75 million tonnes of lithium ore, which is 18.9% of Russia’s total reserves. The “Polar Lithium” project envisions building a mine and a processing plant with a capacity of 2 million tonnes of ore per year, as well as producing 45,000 tonnes of lithium carbonate and hydroxide. Full industrial capacity is planned for 2030.
For India, this is a chance to diversify supply. The country currently meets its lithium demand mainly through imports from China, Vietnam, and Ecuador. Last week, Narendra Modi’s government approved an incentive program for domestic lithium and nickel processing worth 28.14 billion rupees, or about $297 million. NMDC is also studying assets in Africa, Australia, and South America, and a team of 12 specialists has been formed to vet potential targets.
The Federation of Indian Mineral Industries believes Russia could become an alternative source of lithium. The industry body is urging Indian companies to pursue long-term agreements and joint projects in mining, processing, and refining of the metal.
The talks are at an early stage, and US sanctions against Polar Lithium add uncertainty. However, India’s interest itself shows that Russia is seen as a potential lithium supplier for Asian markets. How real the partnership proves depends on how quickly the Kolmozero project reaches industrial scale and whether it can offer competitive terms to foreign capital.
Source: Reuters
Image: kommersant.ru
