The Chinese company will be a main partner in the development of the major lithium field located in the far northern Russian region. The company will take part in exploration of resources, development of technology, as well as production, the Russian license holder informs.
The Kolmozerskoye field is owned by Polar Lithium, a company controlled by Nornickel and Rosatom’s ore mining division, the Russian version of the Barents Observer reports.
“The MCC International knows how to project mine processing plants, it possesses its own ore enrichment and lithium production technology,” Nornickel informs on its Telegram channel.
The Chinese company will reportedly also take part in the development of battery production.
“The experienced Chinese partner will help us more quickly create a high-tech battery industry in Russia,” Nornickel reports.
According to the developers, the new mine and processing plant are planned to be ready for production in year 2030. It is to be able to annually process up to 2 million tons of ore and produce 45,000 tons of lithium hydroxide and carbonate.
Nornickel is running the major nickel and copper mines and metallurgical plants in and around Monchegorsk, Kola Peninsula. The joint venture with Rosatom’s ore mining division was established in 2021.
The Kolmozero is one of two lithium projects under development in the Kola Peninsula. The second project, the Polmostundra field, is located northeast of the town of Lovozero and is owned by companies TD Khalmek and CMP.
Previously, Uranium One, a wholly-owned subsidiary of Russia's State Atomic Energy Corporation, had been actively seeking lithium resources, considering the acquisition of overseas raw materials to integrate into the global supply chain of end-products. In October 2019, the company signed a Memorandum of Understanding (MoU) with Canada's Wealth Minerals Ltd. to acquire a 51% stake in the Atacama lithium project in northern Chile. This asset includes licenses covering 46,200 hectares and is one of the world's highest-grade and largest sources of lithium metal. In December 2019, Uranium One began negotiations with Australia's Prospect Resources Ltd. to acquire a stake in the Arcadia lithium project in Zimbabwe. In September 2022, the company predicted in an internal publication that by 2025, Russia's lithium production would account for 3.5% of the world's lithium production, and by 2030, it would occupy 9% to 10% of the global lithium market.
In addition to seeking lithium resources abroad, Russia is also planning domestic lithium mine development. At a press conference in late December 2023, head of the Federal Agency for Mineral Resources stated that two large lithium mine auctions were held domestically at the beginning of 2023, namely the Pomostondrovskoye and Kovykta deposits. Geological exploration work is in full swing, and these two deposits are planned to start trial mining in 2024. This decision marks another significant step for Russia in the field of new energy, further accelerating the country's layout in the renewable energy and electric vehicles market.
In June 2024, Demidov, CEO of the Russian Polar Lithium Joint Venture, stated that they plan to advance the lithium production project, originally scheduled for 2030, by three to four years, expecting to launch the first phase of production in a pilot mode by 2026 to 2027. With the rapid changes in the global lithium market and Russia's pursuit of energy independence, the company decided to expedite this project. The recent contract signed with China Metallurgical Group Corporation (MCC) may be part of this acceleration, which is of great significance for the transformation of Russia's energy structure.
