India's state-owned mining company NMDC Ltd is exploring investment opportunities in Russia's lithium sector and has held discussions with Russian nuclear firm Rosatom, as India looks to secure supplies of the critical mineral for its battery and electric vehicle (EV) industries.

Three people familiar with the matter told Reuters that NMDC officials visited Russia last month to attend a conference. During the visit, they also held discussions with Rosatom, according to two of the sources. The third person said NMDC was keen to explore opportunities in lithium mining and processing in Russia. The company has also held talks with other Russian firms.

All three sources said the discussions remain at an early stage. They requested anonymity as the talks were confidential.

Last year, NMDC announced plans to explore acquisition opportunities for critical minerals across Africa, Australia and South America as part of its global mineral diversification strategy.

The company has also formed a 12-member team to conduct due diligence on potential critical mineral assets, one of the sources said.

Meanwhile, Prime Minister Narendra Modi's cabinet approved an incentive policy worth Rs 28.14 billion ($297 million) last week to boost domestic processing of lithium and nickel.

India's processing capacity for critical minerals, including lithium, remains at an early stage, according to the government. The country relies heavily on imports and currently sources most of its lithium from China, Vietnam and Ecuador.

Despite holding large lithium reserves, Russia does not yet have commercial lithium production. However, Rosatom and Russian miner Nornickel are developing the country's largest lithium deposit through their joint venture, Polar Lithium. Commercial production is expected to begin by 2030.

The United States imposed sanctions on Polar Lithium and dozens of other Russian entities and individuals early last year.

Another major project is being developed by Arctic Lithium, a venture owned by private Russian companies. It is working on the Polmostundrovskoye lithium deposit in the Murmansk region. The project is also expected to begin commercial production by 2030.

The Federation of Indian Mineral Industries said Russia could offer India an alternative to its existing lithium suppliers.

"We should explore opportunities for long-term lithium supply arrangements and encourage Indian companies to engage with Russian companies in mining, processing and refining projects," a spokesperson for the industry body said.