Nalco Expands Beyond Aluminium Into Rare Earth Mining
India’s state-owned National Aluminium Company Ltd (Nalco) is advancing plans to enter the mining of rare earth elements (REEs) as part of a broader pivot in resource strategy, signalling a shift beyond its traditional aluminium value chain into critical minerals that underpin future industrial technologies. This move aligns with national priorities to strengthen self-reliance in essential materials for electronics, defence, renewable energy and electric vehicles. Nalco rare earths strategy could help reduce import dependence and support domestic clean-technology supply chains.
Nalco’s board has initiated due diligence with a bid advisor to evaluate participation in domestic auctions for REEs, magnesium and chromite blocks, with assessments focused on mine viability, optimal acquisition premiums and competitive positioning. REEs — including neodymium, dysprosium and others — are fundamental for permanent magnets used in wind turbines, EV motors and military guidance systems, making them priority assets in India’s industrial strategy. This strategic exploration comes as India remains highly dependent on imports for rare earths, with global supply chains dominated by a small number of producers, particularly in East Asia. Strengthening domestic sources of critical minerals is central to reducing strategic vulnerabilities and advancing the Atmanirbhar Bharat agenda, which emphasises resource security for key sectors driving economic transformation.
Nalco’s interest in critical minerals complements its existing role as a vertically integrated aluminium producer with assets in bauxite mining, alumina refining and aluminium smelting. While aluminium remains its core revenue engine, diversification into REEs and other minerals would mark a structural shift in the company’s long-term portfolio, enabling it to tap into higher-value segments of the mining value chain. In addition to domestic mining prospects, Nalco is evaluating opportunities in lithium supply through its participation in Khanij Bidesh India Ltd (KABIL) — a joint venture with Hindustan Copper Ltd and Mineral Exploration and Consultancy Ltd. The focus on lithium reflects growing urgency to secure materials essential for battery manufacturing and energy storage, which are critical to India’s electric mobility and renewables ambitions.
Industry analysts note that scaling rare earth mining and processing will require significant investments in technology, beneficiation and separation facilities, areas where domestic capability remains nascent. Strategic partnerships, both public and private, may be necessary to bridge these gaps and enable Nalco to transition from exploration to commercial production effectively. Such value chain development would also foster downstream industries tied to clean technologies and advanced manufacturing. For urban planners and industrial policymakers, the entry of established mining and metals players like Nalco into critical minerals can support broader infrastructure and climate resilience agendas. Secure, diversified mineral supply chains can reduce cost volatility for technologies such as EVs and wind power — components increasingly embedded in sustainable city frameworks.
However, the pathway from exploration to production includes regulatory, environmental and community engagement challenges. Ensuring robust environmental impact assessments and sustainable mining practices will be essential as Nalco navigates this strategic expansion. If successful, Nalco’s rare earths initiative could strengthen India’s strategic mineral base, while setting a precedent for other integrated resource companies to broaden their portfolios in alignment with future industrial demand.
