India is set to witness a surge in its domestic copper production as the Adani Group is building the world’s largest single-location copper manufacturing plant at Mundra in Gujarat. The plant will help reduce India’s dependence on imports and support the country’s energy transition.
Why is copper important for India?
Copper is the third most used industrial metal after steel and aluminium, and its demand is rising on the back of fast-growing renewable energy, telecom and electric vehicle industries. Technologies critical to the energy transition like electric vehicles (EVs), charging infrastructure, solar photovoltaics (PV), wind and batteries, all require copper.
However, India’s copper production has been unable to meet this demand, and domestic supply disruptions have led to a higher dependency on imported copper. India’s per capita copper consumption is estimated around 0.6 kg compared to the global average of 3.2 kg.
What is the Adani Group’s plan?
The Adani Group, led by billionaire Gautam Adani, is investing heavily in energy transition, in which copper will play a vital role. The group is constructing the world’s largest single-location copper manufacturing plant in Gujarat, India. The $1.2 billion facility aims to reduce India’s reliance on copper imports and support the country’s energy transition.
The plant is being set up by Kutch Copper Ltd (KCL), a subsidiary of the group’s flagship Adani Enterprises Ltd (AEL). It will have a production capacity of 1 million tonnes per annum of refined copper in two phases. The first phase, with a capacity of 0.5 million tonnes per annum, will start operations by March 2024. The second phase will be completed by March 2029.
The plant will leverage the Adani Group’s strong position in resource trading, logistics, renewable power, and infrastructure. The group aims to become a global leader in the copper business and the world’s largest copper smelting complex by 2030.
How will this benefit India?
The Adani Group’s copper plant will boost India’s metal production and create employment opportunities in the region. It will also help India achieve its climate goals by supporting the development of clean energy systems and reducing greenhouse gas emissions.
The plant will also enhance India’s strategic position in the global copper market and reduce its vulnerability to price fluctuations and supply disruptions. It will also improve India’s trade balance and foreign exchange reserves by reducing its import bill.
The Adani Group’s copper plant is a landmark project that will transform India’s metal industry and accelerate its energy transition.