https://debatesindigenas.org/en/2025/05/01/from-nickel-to-lithium-nornic...
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As the world shifts to electric vehicles and renewable energy, the demand for lithium, a key component of batteries, has skyrocketed. The Arctic, rich in untapped lithium reserves, and its Indigenous Peoples are now at the forefront of this “white gold” rush. This article examines Nornickel’s dual identity: as a self-proclaimed champion of Russia’s green energy future, yet a notorious perpetrator of environmental destruction and Indigenous rights violations in the Arctic. It exposes the hidden costs borne by Arctic indigenous communities and fragile ecosystems, challenging the resource-intensive sustainability narratives.
The Arctic, a region of striking beauty and extreme vulnerability, has once again become a battleground for resource extraction. Among these resources, Lithium, vital for batteries in electric vehicles and renewable energy storage, has made the region a key player in the global green economy. Yet, the emergence of the Arctic’s “lithium frontier” presents a critical dilemma—advancing climate solutions while endangering one of the planet's most fragile ecosystems through environmental degradation and social disruption.
At the heart of this tension lies Polar Lithium, a joint venture between the companies Nornickel and Rosatom, tasked with developing Kolmozerskoye, Russia’s largest lithium deposit in the Murmansk Region. While the project promises to bolster the country’s strategic position in the global lithium market, it also raises significant concerns for the Indigenous Sámi People whose ancestral lands are directly impacted.
Lithium’s Role in the Global Economy and Russia’s New Focus
Lithium, coined as the “white gold” and “new oil” of the renewable revolution, is shifting global markets. Currently, battery production accounts for 74% of global lithium demand, and this share is expected to grow dramatically as electric vehicle adoption and renewable energy storage systems expand. By 2030, lithium demand is expected to increase 18-fold compared to 2021, with a staggering 60-fold surge anticipated by 2050. Notably, 80% of global lithium deposits are located on lands historically significant to Indigenous Peoples.
Recognizing that the growing demand for raw materials like lithium will, in turn, reshape and possibly shift the focus of geopolitical power, Russia has urgently prioritized developing its domestic lithium capacity to reduce reliance on imports. The country has large lithium ore reserves, accounting for 10% of global reserves (in addition to two of Ukraine's four lithium deposits, which Russia seized control of since its invasion in 2022). Deposits previously abandoned due to non-viability are now seen as critical for strengthening the country’s domestic supply chain. Accordingly, Russia is rapidly advancing lithium ore mining projects at the Zavitinskoye, Polmostundrovskoye, Kovyktinskoye, Yaraktinskoye and Kolmozerskoye deposits with accelerated development planned between 2023 and 2030 to meet most of the growing domestic demand.
In February 2023, Polar Lithium, a collaboration between Nornickel and Rosatom, was awarded the exclusive right to exploit Kolmozerskoye, Russia’s largest lithium deposit. The project, located in the Murmansk Region, aligns with broader plans to reduce the country’s dependence on imported lithium and battery components and is expected to produce 45,000 tonnes of lithium carbonate and hydroxide (key materials for battery production) annually. Awarded through an auction by Russia’s Federal Agency for Subsoil Resources Management, the project has a 20-year subsoil use license with a starting bid of 19 million USD.
Extensive exploration drilling—184 wells totaling over 40 km—was completed in 2023 and 2024, signaling Nornickel’s potential pivot to lithium mining as part of its broader strategy. Rosatom is also constructing a battery factory in Kaliningrad, which is set to produce batteries for 50,000 electric vehicles annually starting in 2025. Another facility is planned, though its location remains undisclosed.
Impacts of Lithium Extraction & Indigenous Communities
Nornickel is the foremost producer of nickel, palladium, and platinum globally, and is also the leading mining and metals enterprise in Russia. Today, driven by global market trends and geopolitical pressures, this global mining giant, with a controversial history of environmental and social harm, is rapidly positioning itself as a major player in Arctic lithium extraction.
Whereas the company’s dominance in Arctic mining and its established infrastructure position Nornickel as a leader in the new frontier, its history casts a long shadow. Past incidents, such as the catastrophic 2020 diesel spill in Norilsk, have underscored its environmental negligence. The company is also responsible for the emission of heavy metals into the atmosphere and the discharge of chemical wastewater into nearby rivers. The potential for similar harm in lithium mining raises questions about whether Nornickel’s green energy agenda is a genuine step toward sustainability or merely another platform for resource exploitation.
Although the project promises economic benefits, it poses severe risks to Arctic ecosystems and Indigenous communities. In particular, the construction of extractive facilities posed a growing challenge to Indigenous nomadic communities. The presence of Nornickel in the region has resulted in a significant reduction in hunting, fishing, and reindeer grounds. While Nornickel has adopted the language of Environmental, Social, and Governance (ESG) principles, portraying itself as a steward of sustainability, its track record suggests otherwise. Investments in emissions reduction have been criticized as superficial, failing to address systemic environmental harm. Similarly, Kolmozerskoye promises economic and strategic gains. Nevertheless, it risks perpetuating cycles of social injustice.
The expansion into lithium mining also represents a potential new pathway for environmental harm, threatening Arctic ecosystems already under strain from climate change and industrial activity. Open-pit mining, the planned extraction method, is one of the most environmentally destructive techniques. It involves removing vast amounts of vegetation, topsoil, and rock, contaminating air and water sources, while causing significant biodiversity loss. Moreover, mining operations could accelerate permafrost degradation, releasing trapped greenhouse gases and further destabilizing the climate.
Indigenous Rights and the Illusion of Consent
Arctic Indigenous communities whose livelihoods depend on reindeer herding, fishing, and hunting are particularly vulnerable. The Kolmozerskoye project threatens their cultural and economic practices, exacerbating the already significant pressures from climate change and industrial encroachment. In fact, lithium mining has already worsened these challenges, displacing communities and eroding cultural practices tied to the land. The Kolmozero region, once home to reindeer herding camps and a meteorological station vital to the Sámi and Komi Peoples, has been deeply affected. When it was announced that lithium extraction would take place in the area, the Indigenous communities chose to leave their ancestral lands. The reindeer herding enterprise “Tundra,” managing 20,000 reindeer, faces potential collapse due to habitat destruction and pollution.
The superficial engagement of Indigenous communities further exacerbates the lingering distrust of industrial projects. All decisions concerning the extractive industry generally occur behind closed doors without much consultation with the people affected about their needs or interests. Despite Nornickel’s assurances and the project’s narrative of fostering a “cleaner world” and engaging with Indigenous Peoples, Sámi residents have raised concerns about the superficial nature of the consultations, noting that only a small fraction of the Sámi population was surveyed. Only 50 Sámi individuals were consulted, despite the region being home to approximately 2,500 Sámi people.
While Nornickel claims adherence to the principle of Free, Prior, and Informed Consent (FPIC), communities are often left with little choice in practice. Instead of genuine dialogue, Nornickel presents the so-called “preferential deals,” effectively pressuring communities into relocation. These tactics reflect deeper structural issues: existing governance structures, including Russian laws and international frameworks like the Arctic Council, have largely failed to protect Indigenous rights, leaving communities vulnerable to exploitation and displacement. Nornickel’s operations reinforce this gap, avoiding meaningful consultation with affected communities.
While branded as FPIC, such practices erode Indigenous sovereignty and perpetuate systemic injustice, highlighting the significant power imbalance between industrial developers and economically vulnerable Indigenous populations. Companies exploit this vulnerability by offering minor incentives, while the consent they secure serves to legitimize their activities. The result is a deeply imbalanced transaction that leaves Indigenous communities with little more than unmet promises and the burden of exploitation. In the hands of companies like Nornickel, FPIC becomes a superficial mechanism, masking underlying coercion and perpetuating the systemic erosion of Indigenous rights and autonomy.
Towards a Just Transition
As nations seek to meet climate targets, the stakes for the Arctic’s ecosystems and peoples have never been higher. The region has been eyed as a major site for green energy projects, including wind farms, solar power, and hydropower. Indigenous communities are once again caught in the middle of the green wars.
Nornickel, a company that portrays itself as a leader in Russia’s green energy ambitions, is deeply tainted by a legacy of environmental destruction and violations of Indigenous rights. The Kolmozerskoye project and similar initiatives highlight the urgent need for a global dialogue on the ethics of Arctic resource extraction. The questions remain: Will Arctic Indigenous peoples have a say in shaping the future of their lands and resources in the race for green energy? Or will the pursuit of green energy come at the expense of the Arctic’s ecosystems and peoples? These questions are particularly pressing given the geopolitical and economic pressures driving Arctic resource extraction, including the involvement of state-backed corporations like Rosatom and Nornickel. The answer will shape the future of the Arctic and its role in the global green economy.
Like any other land-intensive extractive initiative, the development of green mega-projects is prone to provoke conflicts with the communities affected at the local level. It can, therefore, easily renew historical processes of dispossession and colonialism and undermine decades of hard-won progress. The Arctic’s lithium frontier reflects the contradictions of a green economy reliant on resource-intensive practices and encapsulates the paradox of the green economy: resources essential for sustainability threaten to undermine the very goals they aim to achieve. A sustainable future requires not just technological innovation but also a commitment to equity, accountability, and ecological stewardship. Without these measures, the pursuit of “white gold” may leave behind a legacy of loss rather than progress.
On the contrary, a Just Transition framework emphasizes fairness and inclusivity in the shift toward a green economy, ensuring that Indigenous communities, ecosystems, and local stakeholders are prioritized rather than marginalized. In the Arctic context, a just transition framework must include:
- Participatory Governance:
Indigenous Peoples, including the Sámi, must be actively involved in decision-making processes at all stages of resource extraction projects. This requires formal mechanisms for consultation and consent with veto power over projects that affect their lands. - Benefit-Sharing Mechanisms:
Revenue generated from Arctic lithium extraction must be equitably distributed to Indigenous communities. This could include, but is not limited to, royalty payments, investment in local infrastructure, and funding for cultural preservation programs. A portion of profits from projects like Kolmozerskoye should fund community-led initiatives, such as renewable energy systems, education, and healthcare, empowering Indigenous Peoples to shape their own sustainable futures. - Legal Protections for Indigenous Rights:
Strengthened legal frameworks should designate no-go zones for industrial activity in culturally or ecologically significant areas. - Environmental Stewardship:
Mining operations must adhere to stringent environmental standards, with mandatory third-party audits and real-time monitoring of ecological impacts.
Due to the country's political context, the authors prefer to remain anonymous.
Cover photo: Sámi cultural center. Photo: Nikita Bulanin
Tags: Indigenous Debates
