India’s efforts to secure reliable supplies of critical minerals have taken another step, with state-owned mining company NMDC exploring potential investments in Russia’s lithium sector. The company has held preliminary discussions with Russian state nuclear corporation Rosatom about opportunities in lithium mining and processing, as India looks to strengthen supplies for its electric-vehicle, battery and energy-storage industries.
The discussions, reported by Reuters citing three people familiar with the matter, follow an NMDC delegation’s visit to Russia in October 2026. Although the talks remain at an early stage, the development reflects India’s growing interest in overseas mineral assets and its strategy to reduce dependence on China-led supply chains. Russia could eventually become an alternative source of lithium, but its mining projects are still under development and commercial production has yet to begin.
NMDC Explores Lithium Investment Opportunities in Russia
NMDC officials reportedly met representatives of Rosatom during a visit to Russia last month for a conference. According to sources cited by Reuters, the discussions covered possible opportunities in lithium mining and processing.
The company is also understood to have held discussions with other Russian businesses as it evaluates potential investments in the country’s critical-mineral sector.
However, the discussions with Rosatom are preliminary. A spokesperson for Rosatom said the company was not currently engaged in talks with NMDC, while NMDC did not respond to Reuters’ request for comment.
This means there is no confirmed investment agreement, acquisition or lithium supply contract between the two companies at this stage.
For NMDC, the discussions represent an opportunity to expand beyond its traditional iron ore business and build a presence in minerals that are becoming increasingly important to global industrial supply chains.
Why India Is Looking for Lithium Outside China
Lithium has become one of the most strategically important raw materials for the global energy transition.
The metal is a key component in rechargeable batteries used in electric vehicles, smartphones, laptops and large-scale energy-storage systems. Demand is expected to remain closely linked to the expansion of EV manufacturing, renewable energy storage and battery production.
India is seeking to expand its domestic electric-vehicle and battery manufacturing capabilities. However, its supply chain for lithium and other critical minerals remains heavily dependent on imports.
According to Reuters, India currently sources much of its lithium requirement through imports from China, Vietnam and Ecuador.
China’s position in the global battery supply chain is particularly significant because of its extensive lithium processing and refining capacity. Even when raw materials are mined in other countries, processing can take place in China before the material reaches battery manufacturers.
This creates a strategic challenge for India. Securing access to lithium deposits alone may not be sufficient; the country also needs reliable processing, refining and manufacturing capabilities.
Diversifying suppliers could help reduce exposure to disruptions, trade restrictions and geopolitical tensions.
Russia Could Become an Alternative Lithium Supplier
Russia has substantial lithium resources and is attempting to develop a domestic industry around the mineral.
However, the country currently has no commercial lithium production, despite possessing significant reserves.
Two projects are particularly important to Russia’s plans:
1. Polar Lithium
Polar Lithium is a joint venture between Rosatom and Russian mining company Nornickel. It is developing the Kolmozerskoye lithium deposit in Russia’s Murmansk region, considered one of the country’s most important lithium resources.
Commercial production is expected to begin by 2030.
The project could become a major source of lithium for Russia once mining and processing operations are established.
However, Polar Lithium faces an important complication: the United States imposed sanctions on the venture and several other Russian entities in 2025. Any potential investment or commercial arrangement involving the project would therefore require careful assessment of sanctions exposure, financing restrictions and international compliance requirements.
2. Arctic Lithium
Another important development is the Polmostundrovskoye lithium deposit in the Murmansk region.
The project is being developed by Arctic Lithium, a venture owned by private Russian companies. Commercial production is also targeted for around 2030.
The development of these projects could eventually provide Russia with domestic lithium production and create opportunities for international partnerships.
For India, the potential benefit would be access to another geographical source of lithium, although actual supply would depend on project execution, production capacity and commercial agreements.
NMDC Expands Its Global Critical Minerals Strategy
The discussions with Russian companies are part of NMDC’s broader strategy to diversify its mineral portfolio.
The company had previously explored acquisition opportunities in critical-mineral assets across Africa, Australia and South America.
According to sources cited by Reuters, NMDC has also established a 12-member team to conduct due diligence on potential overseas critical-mineral assets.
This team is expected to assess opportunities that could help the company expand into minerals required by emerging industries.
Lithium is an important focus, but the wider critical-minerals sector includes several other materials needed for batteries, renewable energy, electronics and advanced manufacturing.
For NMDC, international investments could provide access to resources and expertise that are not yet widely available in India’s domestic mining sector.
The strategy also reflects a broader change in India’s mineral policy, with government-backed companies increasingly being encouraged to participate in global resource development.
India Approves ₹2,814 Crore Incentive Programme for Lithium Processing
The reported NMDC-Rosatom discussions come shortly after the Union Cabinet approved an incentive programme worth ₹2,814 crore to promote domestic processing of critical minerals, including lithium and nickel.
The programme is intended to strengthen India’s ability to process and refine minerals rather than depending heavily on overseas facilities.
India’s domestic processing capacity for several critical minerals remains at an early stage. Expanding that capacity is essential for building a more integrated battery and electric-vehicle supply chain.
The incentive programme is part of the government’s wider effort to improve the availability of critical minerals for manufacturing and clean-energy technologies.
| Development | Details |
|---|---|
| Incentive programme | ₹2,814 crore |
| Approved by | Union Cabinet |
| Key minerals | Lithium and nickel |
| Main objective | Expand domestic processing capacity |
| Strategic goal | Reduce dependence on overseas supply chains |
| NMDC initiative | Exploring overseas critical-mineral investments |
The combination of overseas resource exploration and domestic processing incentives suggests that India is pursuing a two-part strategy: securing raw materials internationally while building the capacity to process them at home.
Why Lithium Is Important for India’s EV Industry
Lithium is a major component of lithium-ion batteries, which power a large share of electric vehicles and energy-storage systems.
India’s plans to expand EV adoption and battery manufacturing will require dependable access to lithium and other battery materials.
A reliable supply chain can help manufacturers manage production costs, reduce exposure to international price fluctuations and improve the availability of battery components.
Lithium is also important beyond electric vehicles. It is used in batteries for consumer electronics and stationary energy-storage systems that support renewable electricity.
As India expands solar and wind power capacity, energy storage is expected to become increasingly important for balancing electricity supply and demand.
This makes lithium a strategic industrial resource rather than simply another imported commodity.
Challenges Could Complicate an NMDC-Russia Partnership
Although Russia offers potential mineral resources, an investment partnership would not be straightforward.
The first challenge is the absence of established commercial lithium production. Russia’s major projects are still being developed, with production targets around 2030. This means India cannot immediately rely on Russia as a major source of lithium.
The second challenge is geopolitical risk. Sanctions affecting Russian companies and projects could complicate payments, financing, equipment procurement, technology transfers and international partnerships.
The third challenge is project execution. Mining investments require substantial capital, infrastructure, technical expertise and time. Even after a deposit is identified, commercial production depends on processing facilities, transportation networks and regulatory approvals.
Finally, India would need to evaluate whether investing in Russian projects offers better long-term value than securing supplies through other countries.
These considerations will be important before NMDC moves from preliminary discussions to a formal investment decision.
The Bigger Picture
NMDC’s reported discussions with Rosatom illustrate India’s growing focus on securing critical minerals as competition for battery materials intensifies worldwide. The country is trying to reduce supply-chain concentration, develop domestic processing capacity and establish international partnerships that can support its electric-vehicle and renewable-energy ambitions.
However, the development should not be mistaken for an immediate solution to India’s lithium dependence. Russia has yet to establish commercial lithium production, and major projects face development and geopolitical challenges. The real strategic value will depend on whether India can turn exploratory discussions into reliable long-term supplies and build the processing capabilities needed to use those resources domestically.
Looking Ahead
The next important development will be whether NMDC advances its discussions with Rosatom and other Russian companies into formal feasibility studies, investment proposals or supply agreements. Any potential deal will need to address project timelines, ownership structures, financing, sanctions compliance and the economics of lithium production. With major Russian projects targeting commercial output around 2030, meaningful supplies may still be several years away.
For India, the broader objective will remain diversifying lithium sources while developing a stronger domestic battery-materials industry. Overseas investments could provide access to resources, but long-term supply security will also depend on refining capacity, recycling, technology development and partnerships with multiple mineral-producing countries. The NMDC initiative is therefore an early step in a much larger effort to strengthen India’s position in the global critical-minerals supply chain.
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SEO Title: NMDC in Talks With Russia’s Rosatom for Lithium Investments
Meta Description: NMDC is exploring Russian lithium mining and processing investments with Rosatom as India seeks to diversify supplies and reduce dependence on China.
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Secondary Keywords: NMDC Rosatom talks, Russia lithium reserves, India lithium supply, China lithium dependence, critical minerals India, lithium mining Russia, EV battery supply chain
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