Vedanta’s $1.5B push into tech-grade metals

Vedanta Limited reiterated its commitment to enhancing India's technological and engineering capabilities by ramping up its output of value-added metals and energy transition materials.

Vedanta, India's largest producer of aluminium and zinc, has announced several announcements to expand its output of high-end, application-ready metals needed for emerging technologies. The investment, which supports the development of smelting and value-added aluminium production at Vedanta's principal facilities, stems from a commitment of $1.5 billion to increase its capacity. Following this expansion, the proportion of value-added products in Vedanta's aluminium business will be greater than 90% in the near term.

Vedanta's strategic expansion comes at a moment in time when the industrial and digital economy of India are becoming increasingly dependent on critical and transition metals. The company is a contact producer of four of the most used metals in the world (aluminium, zinc, copper, and iron), all of which are integral in the world of infrastructure, electronics, energy systems, and emerging technology applications (e.g., AI, EVs, renewable energy systems, advanced manufacturing).

"Metals are the foundation of modern innovation," the company stated, as it also revealed its growing footprint in critical minerals such as nickel, cobalt, vanadium, and PGEs. Exploration activities are underway across mineral-rich Indian states including Rajasthan, Bihar, and Karnataka, aligning with the government’s mineral security framework.

Aluminium for High-Tech Applications

Vedanta supplies close to 60% of the country's aluminium. The company is focused on expanding value-added aluminium products such as billets and rolled products used in aerospace, defence, solar, high-speed rail, and EV battery enclosures. Recently, over 3,000 aluminium applications have been identified globally, but India has only scratched the surface of around 10%.

Zinc Batteries and Smart Alloys

Hindustan Zinc, Vedanta subsidiary and the world's largest integrated zinc producer is expanding zinc uses beyond galvanising. New alloys of HZDA-3 and HZDA-5 are targeted for use in automobiles, defence, and consumer goods.

As an alternative, zinc is becoming a valid, thermally stable option to lithium-ion in energy storage systems. Zinc's use in semiconductors and as a print medium for 3D printing is also building momentum and could provide secure, scalable energy technologies for India.

Silver and Copper in the Age of Electrification

\There is also an increase in global industrial demand for silver, which is integral to photovoltaics, wearables, and data devices, hitting an all-time high in 2024 of 680.5 million ounces. Vedanta, through Hindustan Zinc, is India's only primary silver producer and plans to capitalise on the difference between domestic demand and global use. 

Copper, another strategic metal, is indispensable to India's electrification plan, with increasing use in EVs, renewable energy, and digital infrastructure. The copper operations of Vedanta create a competitive advantage in a growing demand for copper in these sectors.

Green Metals and Sustainability

With decarbonisation becoming a strategic priority, Vedanta remains committed to investing in low-carbon metal production. Its green zinc label EcoZen, and low-carbon aluminum branded Restora and Restora Ultra, support industries who are focused on the need to be environmentally compliant and reduce carbon.

As India continues to transform itself into a global tech and manufacturing hub, and Vedanta’s vertically integrated metals business continues to innovate, Vedanta is anchored in the nation’s future in technology.