MOSCOW, February 9. /TASS/. Polar Lithium - a joint venture of Nornickel and Rosatom - is licensed to develop the Kolmozerskoye deposit in the Murmansk Region, the mining and metallurgical company said in a release.

The counterparts plan a complete, integrated production that spans from mining and processing to high-tech products. The new facility will be able to replace earlier imported lithium and battery components, the release reads. The auction had been organized by Rosnedra (the national subsoil resources agency). The auction's starting bid was 1.56 billion rubles ($21 million), the license term - 20 years.

The annual production is planned at 45,000 tons of lithium carbonate and hydroxide. These minerals are key ingredients of batteries.

"The Kolmozerskoye project is perfectly timed to meet the growing demand for lithium in electric vehicles and energy storage industries," the release quoted Sergey Stepanov, Nornickel's Senior Vice President - Operational Director as saying. "With lithium projects announced in other countries, we need to move fast. The partnership with Rosatom provides us with a huge set of competencies and a complete integration into the battery business."

According to Igor Demidov, Polar Lithium's CEO, the deposit's development will be Russia’s facility to produce lithium-bearing raw materials and eventually to have a fully local production of lithium-ion traction batteries. "By leveraging the synergy of assets and capabilities, the Rosatom state-run Corporation and the Nornickel Company will accelerate the creation of a full-cycle domestic battery industry: from ore mining to energy storage systems," he said.

Russia's Deputy Prime Minister and Minister of Industry and Trade Denis Manturov stressed the project's strategic importance. By implementing it, the country will cut its dependence on imported materials. "Besides, the deposit's development will give an impetus to a new sector to make Russian batteries, high-tech products for the nuclear industry, space, transport, for work in the Russian Arctic zone," he said.

Kolmozerskoye deposit

Kolmozerskoye, discovered in 1947, is Russia’s most promising lithium deposit. It also contains minerals like beryllium, niobium and tantalum. Norilsk Technical Services and Rusburmash, Rosatom’s exploration and drilling company, in the coming months will conduct additional exploration. The design and exploration phases are due to be completed in a few years. The project’s design capacity is planned to be reached by 2030.

Polmostundrovskoye deposit

The Ministry of Industry and Trade told TASS about results of the auction to develop another biggest lithium deposit in the Murmansk Region - the Polmostundrovskoye deposit. Lithium production at that deposit will begin in the pilot operation mode within the current year - the capacity of up to 1,000 tons will increase to 20,000 tons (in lithium carbonate equivalent) by 2026, the ministry said.