India's Lithium Strategy: NMDC in Talks with Russia's Rosatom for Mining Investments

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India's state-run miner NMDC Ltd. is in preliminary talks with Russia's state nuclear firm Rosatom to invest in Russian lithium projects, three people familiar with the matter said, as India steps up efforts to secure supplies of the metal for its battery and electric vehicle industries. NMDC officials visited Russia last month for a conference and also held talks with Rosatom, two of the people said. The third person, who also confirmed the meeting, said NMDC was keen to explore lithium mining and processing opportunities in Russia and had held discussions with other Russian companies as well.

All three people, who asked not to be named as the talks were confidential, said the discussions remain preliminary. A Rosatom spokesperson did not address Reuters queries about the meetings but said the Russian company was not currently engaged in talks with NMDC. NMDC did not respond to a Reuters request for comment. The company said last year it was exploring acquisition opportunities for critical minerals in Africa, Australia and South America as part of its global mineral diversification strategy, and has formed a 12-member team to carry out due diligence on potential assets, one of the people said.

The talks come a week after Prime Minister Narendra Modi's cabinet approved an incentive policy worth ₹28.14 billion ($297 million) to boost domestic processing of lithium and nickel. India's domestic processing capacity for critical minerals, including lithium, remains at a nascent stage, the government has said, leaving it heavily dependent on imports. It currently meets lithium demand primarily through imports from China, Vietnam and Ecuador. Russia, despite possessing large lithium reserves, currently has no commercial production; Rosatom and Russian miner Nornickel are developing the country's largest lithium deposit through their PolarLithium joint venture, with commercial production expected to begin by 2030.

Why is India chasing lithium abroad?

India's demand for lithium, a critical mineral for batteries and electric vehicles, is rising rapidly, but domestic processing capacity is nascent, making the country heavily reliant on imports. NMDC, India's largest iron ore producer under the Ministry of Steel, has been tasked with diversifying into critical minerals to secure supply chains. Russia, despite large reserves, has no commercial lithium production yet, making the PolarLithium joint venture a potential long-term source.

What could the deal achieve and what stands in the way?

The NMDC-Rosatom talks reflect India's broader strategy to reduce dependence on China for critical minerals. The PolarLithium project, expected to start commercial production by 2030, offers a potential long-term source. The ₹28.14 billion incentive policy signals the government's commitment to building domestic processing capacity, which could reduce import reliance and strengthen India's EV ecosystem. However, discussions remain preliminary, and geopolitical risks, including sanctions on Russia, could affect outcomes.