India eyes Russian coal, nickel assets to secure critical supplies

India’s state-owned steelmaker Steel Authority of India Ltd (SAIL) and mining company NMDC Ltd are exploring the acquisition of coking coal assets in Russia as New Delhi seeks to strengthen long-term supplies of critical raw materials, sources familiar with the matter said, Reuters reports.

India, the world’s second-largest producer of crude steel after China, dispatched a delegation to Russia last month for preliminary discussions with government officials and industry executives, three sources said.

The sources, who requested anonymity because the talks are confidential, said the discussions focused on securing access to key mineral resources.

“Both SAIL and NMDC are exploring sourcing of raw materials and are in talks with Russia,” one source said, adding that SAIL has established an internal committee to assess potential opportunities.

In addition to coking coal, India is seeking to increase imports of nickel from Russia, according to two Indian sources and one Russian source. Initial discussions on nickel supplies were held in New Delhi in April, the Indian sources said.

India’s Ministry of Steel, SAIL and NMDC did not respond to Reuters requests for comment regarding the reported talks. Russia’s Energy Ministry also did not immediately respond to inquiries.

India currently imports nickel from countries including China, Japan, Norway and the United States, while purchases from Russia remain relatively limited.

Nickel plays a critical role in India’s electric vehicle industry, particularly in battery production. The government aims to increase the share of electric vehicles to 30% of passenger cars and 80% of two-wheelers by 2030, compared with approximately 6% and 9%, respectively, at present.

The metal is also widely used in stainless steel manufacturing.

The reported discussions come as India seeks to secure reliable supplies of strategic raw materials to support both expanding steel production and its transition toward cleaner energy technologies.

In January, the Indian government designated coking coal as a critical and strategic mineral, citing the country’s heavy dependence on imports. Authorities have also identified lithium, cobalt and rare earth elements as key resources requiring secure long-term supply chains.

India currently sources more than half of its coking coal imports from Australia, with the remainder supplied by countries including Russia and the United States.

NMDC has been evaluating overseas coking coal investments for several years. In 2025, the company’s chairman said the miner was exploring opportunities in Australia and Indonesia as part of its efforts to diversify supply sources.

By Vafa Guliyeva