The Gautam Adani-led Adani Group is constructing the world’s largest single-location copper manufacturing plant in Mundra, Gujarat. This $1.2 billion facility, set to commence its first phase operations by March-end, aims to reach a full-scale production capacity of 1 million tonnes by 2029. This strategic move aligns with India’s efforts to reduce dependence on copper imports and support the global shift towards sustainable energy sources.
Importance of Adani’s Copper Plant in Energy Transition
- Addresses the rising demand for copper crucial in technologies driving the energy transition, such as electric vehicles (EVs), charging infrastructure, solar photovoltaics (PV), wind, and batteries.
- Positions India alongside China and other nations in rapidly expanding copper production to facilitate the shift away from fossil fuels.
Comparison with Competitors in India
- Adani’s project coincides with Vedanta Ltd’s attempt to reopen a 400,000-tonnes plant in Tuticorin, Tamil Nadu.
- Highlights Hindalco Industries Ltd as the current operator of India’s largest copper smelter with a capacity of 0.5 million tonnes.
Demand Surge and Import Dependency
- Copper, the third most used industrial metal, experiences increasing demand from fast-growing renewable energy, telecom, and electric vehicle industries.
- India’s domestic copper production struggles to meet demand, leading to heightened dependency on imported copper over the past five years.
Global Perspective on Copper Production
- Globally, copper production is concentrated, with Chile and Peru contributing 38% of the world’s total production.
- Adani’s initiative contributes to diversifying global copper production and reduces concentration risks.