Bhubaneswar: State-owned National Aluminium Company Ltd (Nalco) is looking to venture into rare earth elements (REEs) as part of its diversification strategy, with its bid advisor conducting due diligence on domestic auctions for REEs, magnesium and chromite blocks, Chairman-cum-Managing Director Brijendra Pratap Singh said on Monday.
The move marks Nalco’s intent to expand beyond bauxite and alumina into high-value critical minerals that are vital for electronics, defence, renewable energy and electric vehicles. REEs are key inputs for wind turbine magnets, EV motors and missile guidance systems.
With India heavily dependent on imports and China accounting for about 80 per cent of global supply, REE self-reliance has become a strategic priority.
Singh said the bid advisor would assess the viability of mines, appropriate acquisition premiums and Nalco’s participation in upcoming auctions. “The bid advisor will assess if we should participate in domestic auctions of REEs,” he said.
Nalco is also undertaking due diligence to acquire a stake in an operational lithium mine in Australia through Khanij Bidesh India Ltd (KABIL), a joint venture of Nalco, Hindustan Copper and Mineral Exploration and Consultancy Ltd under the Ministry of Mines. The proposed investment would ensure assured lithium offtake for India, supporting domestic supply for EV batteries and renewable energy amid global shortages.
Nalco, which holds a 40 per cent stake in KABIL, may raise it to 50 per cent to fund overseas acquisitions of critical minerals. For 2026, the company’s priorities include maximising capacity utilisation, cutting costs and improving customer satisfaction, while fast-tracking expansion projects.
Singh said the fifth stream alumina refinery and the Pottangi bauxite mines are targeted for commissioning in June 2026. Nalco is also planning the next phase of expansion, including a 0.5 million tonne smelter and a 1,080 MW power plant.