Chinese company plans lithium mine development in Murmansk region of Russia

Chinese company MCC International Inc. Ltd. plans to develop and establish a lithium mine in the Murmansk region of Russia, according to the Norwegian online publication The Barents Observer. The mine is expected to be operational by 2030.

Sanna Kopra, a Finnish expert on China and geopolitics at the Arctic Center of Lapland University, is not surprised by this new collaboration. She notes that the deepening economic ties between China and Russia suggest that China is not likely to condemn Russia’s military actions in Ukraine and is eager to exploit economic opportunities in Russia, which complicates China’s already tense relations with the West.

The deposit in question is Russia’s largest lithium source, located in the Kolmozerskoje area of Murmansk. Russian news agency TASS reported in January that developing this deposit could secure over half of Russia’s lithium needs. Besides lithium, the site also has other rare metals such as niobium, tantalum, and beryllium, essential for steel reinforcement, jet and rocket engines, and nuclear reactors. Lithium is critical for batteries, aviation, strengthening lead, and medication for bipolar disorder.

From China’s perspective, the lithium mine represents green technology as China aims to position itself as a leader in high-tech and clean technology sectors. The economic cooperation has been growing between China and Russia, with Russia seeing fewer foreign investors.

Sanna Kopra points out that while the project may have military implications, it is primarily seen as an economic and social collaboration. The rights to the lithium deposit are held by Russian state-owned mining companies Nornickel and Rosatom, which have established a joint venture called Poljarnyi Litij, aiming to manage the process from mining to electric vehicle production. However, if Chinese investment is substantial, it may impact the sovereignty over resource utilization in Russia.