The Kola Peninsula has major mineral and metal resources, including lithium.

Americans close the door to Russia's biggest lithium mine

The Polar Lithium project in the Kola Peninsula is included in the new US sanctions list.

The Kolmozero lithium resources are located in vulnerable Arctic lands in the central parts of the Kola Peninsula. According to Polar Lithium, the developing company that is owned by Nornickel and Rosatom, the resources exceed 75 million tons of ore.

It will be the biggest lithium mine in Russia, they say.

Together with a Chinese state enterprise, the two Russian companies intend to produce an annual 2 million tons of ore and 45,000 tons of lithium hydroxide and carbonate. The mine and processing plant are to stand to ready for operations by 2030.

But the Russian war of aggression against Ukraine and the massive international sanctions now threaten to hamper project developments. 

The Polar Lithium is among the big number of Russian companies that were included in the round of sanctions announced by the US Treasury on 10 January.

The new sanctions could serious consequences for the project. In August 2024, the developing company and its leader Igor Demidov signed a cooperation agreement with Chinese company MCC International Incorporation Ltd.

The Chinese will take part in exploration of resources, development of technology, as well as production, the deal says.

The Chinese company will reportedly also take part in the development of battery production.

“The experienced Chinese partner will help us more quickly create a high-tech battery industry in Russia,” Nornickel reported after the deal signing ceremony.

MCC International Incorporation Ltd. is part of the Metallurgical Corporation of China Limited (MCC), the large state-owned construction conglomerate affiliated with China Minmetals. 

The Chinese company might not be ready to take the risks connected with challenging the US sanctions regime.

The Kolmozero is one of two lithium projects under development in the Kola Peninsula. The second project, the Polmostundra field, is located northeast of the town of Lovozero and is owned by companies TD Khalmek and KHMS.

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