Indian iron ore giant NMDC Ltd is strategically diversifying its portfolio by exploring lithium assets in Africa and Australia, as revealed by a source familiar with the matter on Friday.
This move underscores NMDC’s proactive approach towards securing critical resources essential for the burgeoning electric vehicle (EV) industry and renewable energy sector. “We are a government company and we want to use the reservation route instead of auctions,” the source stated, highlighting NMDC’s preference for securing mining blocks through government nomination rather than competitive bidding processes.
In June last year, NMDC’s subsidiary Legacy Iron Ore inked a significant lithium exploration agreement with Australia’s Hancock Prospecting Pty Ltd, signalling the company’s intent to expand its footprint in the lithium sector. This strategic partnership reflects NMDC’s commitment to leveraging its expertise in mining operations to tap into lucrative opportunities in the global lithium market. Furthermore, NMDC is actively engaging with the Indian government to secure lithium blocks through nomination-based allocations, further bolstering its position in the rapidly evolving energy landscape. By strategically positioning itself in the lithium space, NMDC aims to capitalise on the growing demand for lithium-ion batteries, which are pivotal for powering electric vehicles and storing renewable energy.
The pursuit of lithium assets abroad aligns with NMDC’s long-term vision of diversifying its resource portfolio and strengthening its presence in high-growth markets. As the global transition towards clean energy gathers momentum, NMDC’s strategic foray into lithium exploration underscores its commitment to driving sustainable growth and contributing to India’s energy security objectives. NMDC’s exploration of lithium assets abroad represents a strategic move aimed at securing critical resources essential for India’s transition towards a sustainable and low-carbon future. By venturing into the burgeoning lithium market, NMDC is poised to play a pivotal role in powering India’s green energy revolution and fostering economic growth in the years to come.
