NLC India Ltd (NLCIL), a PSU under the Ministry of Coal, has signed a Memorandum of Understanding (MoU) with Indian Rare Earths Ltd (IREL) to collaborate on exploration, acquisition, and development of critical minerals and rare earth elements (REEs) sector both domestically and internationally.
This collaboration aligns with India’s strategic push for self-reliance in key mineral resources essential for national security, energy transition, and technological development.
Key Highlights of MoU
- Objective: Joint development of critical mineral assets, including Rare Earth Elements (REEs), through:
- Mining
- Extraction
- Refining
- Processing technologies
- Focus Areas:
- Acquisition of critical mineral assets
- Raw material sourcing (India & abroad)
- Resource identification and feasibility studies
- Development of processing technologies
- Establishment of Joint Ventures
- Knowledge sharing and technical cooperation
- Strategic Importance: Supports India’s mission to reduce import dependency and build secure mineral supply chains for future technologies and defence.
About NLC India Ltd (NLCIL)
| Feature | Details |
| Type | Central Public Sector Undertaking (PSU) |
| Administrative Ministry | Ministry of Coal |
| Year of Incorporation | 1956 (under Companies Act, 1956) |
| Headquarters | Neyveli, Tamil Nadu |
| Core Business | Lignite & coal mining, thermal power generation |
| Renewable Projects | Solar and wind energy projects |
| Mines Operated | 4 lignite mines, 1 coal mine |
| Power Plants Operated | 6 thermal power plants |
Recent Initiative:
- Power Purchase Agreement (PPA) signed by NLCIL’s renewable energy arm, NLC India Renewables Ltd (NIRL) with Rajasthan Rajya Vidyut Utpadan Nigam Ltd for an 810 MW Solar Power Project at Pugal Solar Park, Bikaner, Rajasthan.
About Critical Minerals
- Definition: Minerals essential for economic development, technological growth and national security, with a vulnerable supply chain.
- Supply Risk: Concentrated availability creates supply chain vulnerabilities
- Importance for India:
- Crucial for renewable energy, electric vehicles (EVs), mobile phones, medical equipment, and defence
- Needed for Net Zero goals, green technologies (e.g. solar panels, semiconductors, wind turbines)
- Reduce 100% import dependency on select minerals
- Enable planning for long-term mineral security and self-reliance
- Examples: Lithium, cobalt, graphite, titanium, rare earth elements
- Goal: Reduce import dependency and secure long-term strategic autonomy in critical mineral resources.
About Rare Earth Elements (REEs)
- Definition: A group of 17 elements: 15 Lanthanides + Scandium and Yttrium
- Key Characteristics:
- High density, melting point, conductivity, and thermal conductance
- Similar physical and chemical properties
- Trivalent charge (+3) and similar ionic radii
- Applications: Used in 200+ products, including:
- Consumer electronics
- Electric vehicles (EVs)
- Defence systems
- Renewable energy (wind turbines, solar panels)
- Communications and nuclear energy
- India’s Position:
- 5th-largest rare earth resource globally
- Mainly found in monazite minerals along coastal areas
- Significance: REEs are vital for green technologies, national defence, and digital infrastructure.