New Delhi: State-owned National Aluminium Company Limited (NALCO) is actively exploring diversification beyond its traditional bauxite and alumina operations by venturing into high-value critical minerals essential for electronics, defence, renewable energy, and electric vehicles (EVs). The move is part of the company’s strategic plan to strengthen domestic supply chains and support India’s push for Atmanirbhar Bharat.
NALCO Eyes Rare Earth Elements and Critical Minerals
In an interview with PTI, NALCO Chairman-cum-Managing Director Brijendra Pratap Singh confirmed that the company’s bid advisor is conducting due diligence on upcoming domestic auctions of rare earth elements (REEs), magnesium, and chromite blocks. These minerals are crucial for the manufacture of magnets used in EV motors, wind turbines, and missile guidance systems.
“India is heavily dependent on imports for REEs, and securing domestic sources is critical to reduce reliance on China, which dominates around 80 percent of global REE production,” Singh said.
The bid advisor is tasked with evaluating mine viability, optimal acquisition premiums, and potential participation in domestic auctions for these strategic minerals.
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Lithium Acquisition to Boost Domestic EV Supply
NALCO is also exploring the acquisition of a stake in an operational lithium mine in Australia through Khanij Bidesh India Ltd (KABIL), a joint venture between NALCO, Hindustan Copper Ltd, and Mineral Exploration and Consultancy Ltd. The acquisition would guarantee a minimum offtake of lithium for India, strengthening domestic supply for EV batteries and renewable energy projects amid a global shortage.
Singh noted, “Due diligence for the lithium stake is ongoing. Lithium is critical for India’s EV push and net-zero commitments.” NALCO currently holds a 40 percent stake in KABIL and plans to potentially raise it to 50 percent to fund overseas critical mineral acquisitions.
Focus on Operational Excellence and Expansion
While pursuing diversification, NALCO is prioritizing the optimization of its existing operations. The CMD emphasized maximizing production volumes, reducing costs, and enhancing customer satisfaction through quality, packaging, and cost alignment.
Key expansion projects include:
- Commissioning the fifth stream refinery by June 2026.
- Starting the Pottangi bauxite mines in June 2026.
- Future plans for a 0.5 million tonne aluminium smelter and a 1,080 MW captive power plant.
“These projects are aligned with NALCO’s objective to scale operations and remain competitive in the aluminium and critical minerals sector,” Singh added.
About NALCO
NALCO, a ‘Navratna’ public sector undertaking under the Ministry of Mines, is one of India’s leading integrated players in the aluminium value chain. The company operates across bauxite mining, alumina refining, aluminium smelting, coal and power generation, and is now expanding into critical minerals to support emerging sectors such as EVs, renewables, and defence.
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