Indian state of Andhra Pradesh is to team up with RUSAL to explore aluminium smelter investment near Pioneer refinery

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Andhra Pradesh Minister for Education, IT and Electronics, Nara Lokesh, met senior officials of RUSAL on the sidelines of the St. Petersburg International Economic Forum (SPIEF) 2026.

The main objective was to discuss RUSAL’s potential investment in Andhra Pradesh and opportunities to expand aluminium manufacturing in the state.

Lokesh reviewed the progress of RUSAL’s investment in Pioneer Aluminium Industries, where the company bought a 26 per cent stake in March 2025. Pioneer Aluminium runs a 1.5 million tonne-per-annum alumina refinery in Andhra Pradesh and supplies both domestic and export markets. 

During the meeting, Minister Lokesh invited RUSAL to analyse the next phase of investment by setting up aluminium smelting capacity beside the existing alumina refinery.

According to the state government, such an investment would allow alumina produced in Andhra Pradesh to be converted into primary aluminium within the state, creating additional value addition, employment opportunities and export potential.

The two sides also discussed the possibility of developing an integrated aluminium manufacturing ecosystem in Andhra Pradesh by utilising the state's industrial infrastructure, deep-water ports, logistics network and renewable energy capacity.

The proposed expansion could support growing aluminium demand from sectors including automotive, aerospace, power, construction and advanced manufacturing.

Lokesh said Andhra Pradesh has an opportunity to move further up the aluminium value chain instead of exporting alumina and could emerge as a producer of value-added aluminium products for both domestic and international markets.

The Minister’s words were, “Rather than exporting alumina, Andhra Pradesh has the opportunity to move further up the value chain and become a major producer of value-added aluminium products for domestic and global markets.” 

RUSAL officials shared updates on the company's operations in India and discussed its long-term interest in supporting the growth of India's metals and manufacturing sectors.

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The company said it would evaluate the proposals discussed during the meeting and explore opportunities to expand its presence in Andhra Pradesh.

Headquartered in Moscow, RUSAL is one of the world’s largest aluminium producers and a supplier of low-carbon aluminium. The company runs across the aluminium value chain, including bauxite mining, alumina refining and aluminium production.

RUSAL has operations in more than 20 countries and employs over 90,000 people. The company supplies aluminium products to customers in the automotive, aerospace, packaging, construction and energy sectors.