India’s aluminium industry is currently led by major players like Hindalco, Vedanta, and National Aluminium Company (NALCO). The first phase of the project is expected to be commissioned by 2030, with plans to produce 500,000 tonnes of primary aluminium annually. The facility will be strategically located near a port in South India to optimize logistics. To ensure sustainable production, the plant will harness 1.8 to 2.0 GW of solar and wind power, supported by pumped hydro storage, requiring a total renewable capacity of approximately 7 to 8 GW.

Aluminium, due to its lightweight, ductile, and fully recyclable nature, is increasingly in demand across sectors like automotive, construction, power, packaging, and transportation. Global demand for aluminium is estimated at 70 million tonnes annually. Analysts predict that building this facility could require a phased capital investment of $5–7 billion, with power costs being a significant factor. While coal has historically powered aluminium smelters, the industry is transitioning towards cleaner energy sources. For example, Vedanta Aluminium, India’s largest producer, plans to increase its renewable energy share from 5 per cent in 2024 to 30 per cent by 2030.

India is the world’s second-largest aluminium producer, with a capacity exceeding 4 million tonnes per annum. In FY24, the country produced 23.93 million tonnes of bauxite, though it continues to import significant amounts of the ore despite its substantial reserves.

News source: Business Standard