NALCO Accelerates Overseas Lithium Hunt in Argentina, Australia for Supply Security

"NALCO, through KABIL, is already engaged in lithium exploration overseas and we are expediting the process," Singh told ANI in an exclusive interview. "In Argentina, three lithium blocks have been allotted and non-invasive exploration has already given encouraging results."

Singh said the company has now moved to the next phase of evaluation, appointing a project monitoring consultant to carry out invasive exploration, including drilling and pilot-scale testing.

"This phase will take around one to one-and-a-half years, after which we will know the depth, grade and commercial viability of lithium mining," he said.

He added that clarity on commercial volumes is expected by the end of 2027. "Only after invasive exploration is completed can we determine the scale at which mining can be undertaken," Singh said.

Alongside Argentina, NALCO is also evaluating opportunities in Australia through Khanij Bidesh India Ltd (KABIL), a joint venture with Coal India and ONGC Videsh.

"Some operating lithium mines are available in Australia, and we are conducting due diligence to assess the size and value of stakes we can acquire," Singh said. "If the evaluation is favourable, we can directly acquire equity in operating mines."

The overseas push aligns with India's National Critical Minerals Mission, which encourages state-run firms to secure mineral assets abroad to reduce dependence on imports. Singh said India lacks proven large-scale domestic reserves of several critical minerals.

"Lithium and many other critical minerals are not yet available in proven quantities in India, which is why overseas acquisition becomes important," he said.

Latin American countries such as Argentina, Chile and Bolivia, along with Australia, host a majority of the world's lithium reserves and are central to India's long-term energy transition strategy.

On the domestic front, Singh said NALCO is also evaluating participation in rare earth mineral development, though projects remain at an early stage.

"We have appointed a bid advisor who will guide us on auctions, due diligence and possible joint ventures for rare earths," he said. "Depending on the opportunity, we may participate either through auctions or partnerships."

He noted that public sector entities such as IREL, along with companies like HCL, are already active in the rare earth space, while NALCO is keeping its options open. "Rare earths, magnesium and other strategic minerals are areas we are examining as part of our diversification strategy," Singh said.

NALCO's diversification beyond aluminium reflects a broader policy push to strengthen domestic manufacturing of electric vehicles, renewable energy equipment and advanced electronics, all of which rely heavily on critical minerals.

"The country's focus is on self-reliance, and critical minerals are essential for that," Singh said. "Our overseas initiatives are fully aligned with national priorities and long-term industrial demand."

He added that while aluminium remains NALCO's core business, expanding into critical minerals is a strategic necessity. "This is about future-proofing -- ensuring availability of key inputs for India's growth over the next two to three decades," Singh said.

- ANI