NALCO Steps Up Global Push for Lithium, Advances Projects in Argentina and Australia

BHUBANESWAR (Odisha): State-run National Aluminium Company Ltd (NALCO) is fast-tracking its international strategy, with a strong focus on lithium and other critical minerals to ensure long-term supply chains for electric vehicles (EVs) and renewable energy.

Argentina: Moving to Invasive Exploration
NALCO is executing its overseas expansion through Khanij Bidesh India Ltd (KABIL), a joint venture with Coal India and ONGC Videsh.

In Argentina, the company has already been allotted three lithium blocks. Following “encouraging results” from initial non-invasive exploration, NALCO has now moved to the next stage of development.

The company has appointed a project monitoring consultant to oversee invasive exploration, which includes drilling and pilot-scale testing.

Timeline: This technical evaluation phase is expected to last 12 to 18 months.

Commercial Outlook: CMD S. K. Singh noted that detailed clarity on the depth, grade, and commercial viability of lithium mining in these blocks is expected by the end of 2027.

Australia: Direct Equity in Operating Mines
Alongside greenfield projects in Argentina, NALCO is scouting for immediate opportunities in Australia.

Strategic Acquisitions: The company is conducting due diligence on several operational lithium mines in Australia.

Immediate Impact: Should the assessments prove favorable, NALCO plans to acquire direct equity stakes in these mines. Unlike exploration projects, this approach would provide India with a ready and reliable supply of lithium.

Diversification into Rare Earths and Strategic Minerals
While aluminium remains NALCO’s core business, the company is aggressively diversifying into minerals essential for defence, electronics, and wind energy.

Broadened Portfolio: NALCO is exploring opportunities in rare earth elements, magnesium, and chromite.

Domestic Strategy: The company has appointed a bid advisor to support participation in domestic auctions, conduct due diligence, and identify potential joint ventures for rare earths.

National Security: Singh emphasized that India lacks proven large-scale domestic reserves of these minerals. Acquiring assets in Latin America (Argentina, Chile, Bolivia) and Australia is therefore a “strategic necessity” to reduce import dependency.

This expansion aligns with the National Critical Minerals Mission, a policy framework designed to encourage state-run companies to secure critical mineral assets abroad.

Singh added that these initiatives are critical to ensuring the availability of key inputs for India’s industrial growth over the next 20–30 years. The overarching aim is to support “Atmanirbhar Bharat” (Self-Reliant India) by building a strong domestic manufacturing ecosystem for high-tech sectors that currently depend heavily on imports from dominant global suppliers.