Runaya, a Vedanta Group company renowned for its zero-waste and zero-discharge aluminium processing, is gearing up for a major expansion with an investment of INR 1,000–INR 1,200 crore (USD 144.58 million approx). A substantial share of this outlay, between INR 300–INR 500 crore , will be dedicated to setting up new facilities for rare earth element (REE) processing and magnet manufacturing.
This proves that India is recalibrating its position in the space of critical minerals like rare earth elements. Some few days back, in a strategic shift to strengthen control over critical minerals and reduce reliance on China, India had instructed state-run miner IREL (India) Ltd. to suspend its 13-year-old rare earth export agreement with Japan. As China tightens rare earth exports, triggering force majeure claims and affecting India's EV and auto sectors, Indian companies and policymakers are stepping up to reduce import dependency and build domestic capabilities- click here to read how.
The remainder of the capital expenditure will support a significant scale-up of Runaya’s recycling operations, with plans to double its current capacity from 100,000 tonnes per annum to 200,000 tonnes over the next two years. The company has a dedicated business unit for Green Aluminium Recovery, which focuses on transforming aluminium dross, a byproduct of the smelting process, into value-added products.
This expansion highlights Runaya’s ongoing commitment to advancing its green aluminium recovery and diversified metal recovery segments. It also proves that the aluminium recycling market is witnessing good demand. Runaya uses a three-stage process to address the challenge of aluminium dross in an environmentally sustainable way. It currently operates with an installed capacity of 40,000 MT out of which the company recovered around 16,000 tonnes of aluminium metal. Further,
Runaya also aims to reduce the 80,000 tonnes of dross that currently end up in landfills yearly by 30,000 tonnes, targeting 100 per cent of waste utilisation. Jagannath Prasad, CEO of Green Aluminium Recovery & Diversified Metal Recovery Business at Runaya, stated that the company is “seriously evaluating” the rare earth element (REE) initiative.
To propel the project forward, Runaya is actively exploring multiple strategic options, including joint ventures with global partners, technology transfers, and other collaborative models. Talks with international players are in progress as the project details continue to take shape.
Runaya’s strategic investment underscores India’s increasing emphasis on critical minerals and advanced manufacturing. The initiative aims to bolster domestic supply chains and reduce dependence on imports for key components such as rare earth magnets.
Image Source: Runaya website
Responses
