Will rare-earth pivot extend Nalco’s rally, or end it?

Subscribe to enjoy similar stories. Nalco recently grabbed headlines for its entry into critical minerals and rare-earth elements (REEs). Chairman and managing director Brijendra Pratap Singh mentioned on 19 January that the company is open to exploring the domestic critical minerals industry, and that due diligence on auctions for REEs, and chromite and magnesium blocks is underway.

Following China’s repeated politically-motivated clampdowns on REEs used in magnets, the world’s electric vehicle, clean energy, electronics, and defence ambitions have faced abrupt halts and delays. Many economies, including India, have been justifiably exploring alternative sources. Nalco’s potential inroads into the industry will deepen strategic alignment with national priorities.

To be sure, Nalco stock is already on a winning streak. In FY26 so far, the Navratna company has more than doubled investor wealth, massively outperforming both the sector and the broad market index. Will the REE-pivot take Nalco to the next level or break its winning streak? Nalco’s fortunes are closely linked to aluminium prices on the London Metal Exchange (LME).

This has worked in its favour lately. Demand for aluminium has accelerated, thanks to its use in fast-growing sectors, including electric vehicles, solar energy, infrastructure, power, and data-centres. It is also used as a substitute for copper, whose price has skyrocketed.

Tariffs have also pushed the pedal on global aluminium prices. Meanwhile, supply has been constrained. China, which accounts for about 60% of global aluminium production, has been operating close to its regulatory output cap.