National Aluminium Company (Nalco) is planning to diversify into the critical minerals sector, according to Chairman and Managing Director Brijendra Pratap Singh. While Nalco currently doesn’t operate in this space, the company is exploring opportunities to acquire exploration rights in India and intends to participate in upcoming government auctions for critical mineral blocks. These minerals, including rare earth elements, are vital for industries like electric vehicles and defence. China currently dominates the market for magnets made from these minerals, and its export restrictions have impacted global supply chains.
Nalco is already engaged in overseas critical mineral exploration through Khanij Bidesh India Ltd (Kabil), a joint venture in which it holds a 40% stake. Kabil has secured lithium exploration rights in Argentina and signed agreements in Australia.
Domestically, Nalco faces pressure due to surplus alumina. The company plans to invest ₹30,000 crore over five years to build an aluminium smelter and a 1 GW coal-based power plant in Odisha. Additionally, Nalco aims to source 30% of its power from renewables by 2030 and is actively pursuing new bauxite and coal mine acquisitions.