In a bold leap toward self-reliance and semiconductor supremacy, National Aluminium Company (Nalco) is gearing up to become the first Indian company to produce the elusive rare metal gallium within the next two years. On Tuesday, the firm announced its initiative to extract gallium is now at the advanced stage and the likelihood to start the commercial production in the upcoming two years.
India's leading aluminium producer has partnered with the Bhabha Atomic Research Centre (BARC) and the Heavy Water Board (HWB) on R&D initiatives focused on gallium extraction and non-nuclear applications of heavy water. Leveraging these collaborations, the company has successfully developed an indigenous technology to extract gallium, a critical metal recovered as a by-product in the alumina production process from bauxite.
Poised to be India's first gallium producer
The company has announced plans to establish a 10-tonne-per-year gallium extraction facility adjacent to its alumina refinery at Damanjodi in Odisha's Koraput district. Upon commissioning, the company will become the first in India to produce gallium, a market currently dominated by China.
A prototype facility is currently being established at the Damanjodi refinery, expected to be ready within eight to nine months, followed by a year of testing. Commercial production will commence after the pilot phase, positioning the firm as the exclusive producer of gallium in India, given that no other entity in the country is manufacturing the rare metal at present.
Why focus on gallium?
Gallium, a soft silvery metal, is primarily utilised in the electronics sector for applications such as semiconductors, LEDs and lasers. It also finds use in medical imaging as a mercury substitute in thermometers and in the development of specialised alloys.
Gallium, recovered as a by-product in alumina refining, holds strategic importance for the global aluminium industry, linking primary production to high-value applications in semiconductors, optoelectronics and advanced alloys. Its growing demand underscores aluminium's role as a critical enabler for future technologies.
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NALCO's plan for further investment
The company has outlined expansion plans involving an investment of over INR 35,000 crore (USD 4.02 billion) to scale up aluminium production, alongside the commencement of operations at the Pottangi bauxite mine, which holds reserves of 111 million tonnes. The company confirmed that statutory approvals are in progress, with the mine expected to be operational by June next year.
CMD Brijendra Pratap Singh announced the company's decision to pursue a brownfield expansion of its aluminium smelter and an associated power plant in Angul, with land acquisition currently in progress. The firm aims to increase smelter capacity by an additional 500,000 tonnes per annum by 2030, backed by an estimated investment of INR 18,000 crore (USD 2.07 billion).
An outlined further growth plan includes the development of a 1,080 MW captive power plant with an investment of INR 12,000 crore (USD 1.38 billion), alongside an expansion of alumina refining capacity by 1 million tonnes annually for INR 5,677 crore (USD 652.4 million), according to CMD Brijendra Pratap Singh.
On the critical minerals front, the firm, through its joint venture with Khanij Bidesh India Ltd (KABIL), has secured five mines in Argentina, with a consultant to be appointed shortly to assess commercial mining opportunities. The mines are expected to be operational by the end of 2027. The company is also exploring investments in lithium assets in Australia and evaluating similar opportunities in Chile through KABIL.
Regarding the recently announced 50 per cent tariff by the US, the move will not impact the organisation, as the company has strategically shifted its focus to the UK, a zero-tariff free trade zone. With no domestic smelters, the UK presents strong export potential, particularly to cater to its growing demand for aluminium in the electric vehicle and solar panel sectors.
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