Adani Group To Build World's Largest Copper Plant In Gujarat
The Gautam Adani-led group is set to establish the world's largest single-location copper manufacturing plant in Mundra, Gujarat, signalling a significant stride in India's efforts to reduce dependence on copper imports and facilitate the energy transition. The USD 1.2 billion facility is expected to commence operations in the first phase by the end of March, with plans to reach its full-scale capacity of 1 million tonnes by 2029.
India is now aligning itself with countries like China that are rapidly expanding copper production, recognising its pivotal role in advancing the global transition away from fossil fuels. Copper is a critical component for various technologies crucial to the energy transition, including electric vehicles (EVs), charging infrastructure, solar photovoltaics (PV), wind energy, and batteries.
The Adani Group's ambitious copper plant comes at a time when Vedanta is exploring the reopening of a long-shuttered 400,000 tonnes plant in Tuticorin, Tamil Nadu. Hindalco Industries operates the country's largest copper smelter with a capacity of 0.5 million tonnes.
As the third most used industrial metal globally, after steel and aluminium, copper's demand is surging, driven by the rapid growth of renewable energy, telecom, and electric vehicle industries. India, however, has faced challenges in meeting this rising demand, leading to an increased reliance on imported copper. Over the past five years, the country's copper imports have consistently risen, making it imperative for domestic production to catch up.
Globally, the copper production landscape is relatively concentrated, with Chile and Peru accounting for 38 per cent of world production. India's move to enhance domestic copper production not only addresses the immediate demand but also aligns with broader environmental goals and reduces vulnerability to supply disruptions.
The Adani Group's initiative is poised to play a pivotal role in bolstering India's self-sufficiency in copper production, fostering economic growth, and supporting the nation's transition towards a sustainable and greener future. The plant's strategic location in Mundra, Gujarat, reflects the state's commitment to becoming a hub for cutting-edge industrial development.
