National Aluminium Company Limited (NALCO) and the CSIR-National Metallurgical Laboratory (CSIR-NML) signed an agreement on January 6, 2026, to collaborate on India's first pilot project for scandium recovery from red mud. The partnership will scale up CSIR-NML's indigenously developed red mud recycling technology into a large-scale pilot plant with a capacity of 10 tonnes per day.
This collaboration aims to address the growing demand for scandium and the urgent need for red mud remediation. India generates over 5 million tonnes of red mud annually, with a scandium content of 45-70 ppm. Currently, only about 3% of the approximately 140 million tonnes of bauxite residue produced globally each year is utilized. CSIR-NML's technology is expected to recover critical minerals such as alumina, iron, titanium dioxide, and scandium oxide from red mud, while also producing a rare earth element concentrate that can serve as feedstock for scandium extraction.
Scandium, a high-value metal, is widely used in fuel cells, aerospace, lasers, and 3D printing. This pioneering project in India not only has the potential to advance NALCO's red mud rehabilitation efforts and mitigate environmental pressures but will also strengthen India's rare earth element supply chain, contributing to the realization of a circular economy and strategic resource independence.
