India Explores Russian Coking Coal, Nickel to Secure Critical Raw Materials

As New Delhi aims to secure long-term access to critical raw materials needed for the clean energy transition, India’s state-owned Steel Authority of India (SAIL) and National Mineral Development Corporation (NMDC) are exploring acquisitions of Russian coking coal assets and additional nickel supplies.

According to Reuters’ anonymous sources, India sent a delegation to Russia last month, seeking preliminary talks with government representatives and industry executives on possible deals regarding coking coal assets and wider cooperation over raw material supplies.

While the discussion remains confidential, “both SAIL and NMDC are exploring sourcing of raw materials and are in talks with Russia,” one of Reuters’ sources said.

Reportedly, SAIL has set up “an internal panel” to study options for sourcing more coal and other inputs from Russia, while NMDC continues to evaluate overseas coking coal projects as a part of its broader strategy.

India, Russia discuss steel and nickel industry 

Although India is the world’s second-largest producer of crude steel after China, it relies heavily on imported coking coal. More than half of its needs are being drawn from Australia, the United States and Russia.In January, the Indian government classified coking coal as a critical strategic mineral, underscoring concerns about import dependence and the need for stable supply lines.

According to a different report from Reuters, India’s steel secretary met Russia’s deputy minister of industry and trade, April 16, to discuss possible raw material sourcing and cooperation in the steel sector, as well as other technological and equipment collaborations. 

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New Delhi is currently working on arrangements to increase nickel imports from Russia, complementing existing purchases from countries such as China, Japan, Norway and the US.

Key component for electric vehicles, stainless steel production

Nickel is a critical component of India’s electric vehicle supply chain, particularly for the production of batteries. The metal’s dual role in batteries and stainless steel makes it central to India’s industrial growth and its plans to decarbonize manufacturing and transport. 

New Delhi is aiming to produce more electric vehicles, which would account for 30% of cars and 80% of two-wheelers by 2030, marking a rise from current about 6% and 9%.

Authorities have also signaled that India wants to lock in supplies of other essential inputs, including cobalt, lithium and other rare earth elements, all of which are vital for high-tech manufacturing and renewable technologies.