Globally, the race to decarbonise is heating up and aluminium is at the centre of this transformation. With China pledging that 30 per cent of its aluminium smelting will be powered by renewables by 2027, the pressure is mounting on other nations to step up. India, for its part, is not only in the race but is also hitting the accelerator.
In 2024, India nudged its aluminium output slightly higher, reaching approximately 4–4.2 million tonnes. But this is just the beginning.
Indian producers are charting an aggressive course toward both capacity expansion and carbon reduction. The “Big Four”—Vedanta, Hindalco, Nalco, and Balco have announced a collective investment of $5 billion to build 20 GW of renewable energy capacity by 2030. The goal is clear, to shift aluminium production from its coal-heavy roots to a future driven by solar, wind, and green hydrogen.
Why such urgency? Aluminium smelting is notoriously energy-intensive, requiring around 14 to 15 megawatt-hours of electricity per tonne. Historically, this demand has been met by coal-based captive power plants. But with tightening climate targets and looming carbon border taxes in international markets, the Indian industry understands the stakes and the opportunity.
These moves are not occurring in a vacuum. Aluminium demand is poised to explode.
China alone will account for two-thirds of the projected growth by 2030 an additional 12.3 million tonnes. The rest of Asia will need 8.6 million more, followed by North America at 5.1 million and Europe at 4.8 million. Together, these regions will drive over 90% of the world’s additional aluminium requirements.
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But growth without sustainability is a dead end. As Zaid Aljanabi, head of aluminium at CRU, notes, the industry must not only expand but also "advance its sustainability credentials" and work collaboratively across the value chain.
Europe offers a powerful example. Since 1990, the carbon intensity of European primary aluminium has dropped by over 50 per cent. Today, European-made aluminium boasts one of the world’s lowest carbon footprints 60 per cent below the global average and just a third of China’s. However, progress is fragile. Since 2021, the global warming potential (GWP) of aluminium imported into Europe has risen by 11 per cent, driven by an influx of fossil-fuel-based ingots. This trend threatens to undermine Europe's green gains and sends a stark message to policymakers: support for low-carbon domestic production is essential.
It’s not just about primary metal anymore. European producers are also pushing the envelope on rolled and extruded products, setting a benchmark in environmental performance throughout the value chain. India’s aluminium giants appear to be taking notes. Their current investments across upstream mining, midstream smelting, and downstream innovation signal more than just capacity growth. They represent a bold pivot toward sustainability at scale.
As the global aluminium industry undergoes a profound green transformation, India is emerging as a key player not just in meeting surging demand, but in doing so with cleaner, smarter, and more sustainable infrastructure. The race isn’t over. But India has made its move and its gaining ground fast.
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