Adani Nuclear Power Capacity Plan Targets 10GW by 2035

Adani

Adani nuclear power capacity could reach 10GW by 2035 as the Indian conglomerate expands into atomic energy alongside thermal, renewable, hydroelectric and gas-based generation. The plan would make Adani one of the most ambitious private entrants into India’s nuclear power sector.

Adani nuclear power capacity development comes as India seeks to widen private participation in nuclear generation. The country needs significantly more reliable baseload power to support industrialisation, electrification and rising digital infrastructure demand.

Adani nuclear power capacity will be developed through Adani Atomic Energy, a wholly owned subsidiary incorporated by Adani Power in February. The business is authorised to generate, transmit and distribute electricity from nuclear and atomic energy.

The group has not disclosed potential sites, reactor configurations or grid integration plans. However, the 10GW target would represent around one-tenth of India’s planned 100GW nuclear fleet by 2047.

Nuclear Adds Baseload Power to Adani’s Integrated Energy Strategy

Adani plans to invest more than Rs2 trillion over the next five years to expand its overall power generation portfolio to 45GW. The programme covers thermal power, renewables, hydroelectricity, pumped storage and supporting transmission infrastructure.

Nuclear adds a different capability to that portfolio. It can provide large-scale, low-carbon baseload electricity while renewable generation expands.

India currently has around 8.8GW of installed nuclear capacity, with nuclear supplying about 3% of national electricity generation in the 2024-25 financial year. Reaching 100GW by 2047 would therefore require a major acceleration in construction.

Private-sector participation could help provide capital, engineering capacity and project execution. However, nuclear projects require long development periods, strict regulation, specialised supply chains and large upfront investment.

For Adani, nuclear could complement its existing thermal and renewable assets. A diversified generation mix gives the group more flexibility as India’s power demand rises.

The company also remains heavily invested in coal generation. Adani Power operates 18.33GW and has 23.72GW of locked-in capacity, giving it a target of 42.05GW by the 2031-32 financial year.

Data Centres and Grid Growth Strengthen Power Demand Outlook

Adani’s nuclear target also fits rising electricity demand from digital infrastructure. The group’s data centre business aims to reach 3GW of capacity by 2030, supported by growth in artificial intelligence and cloud computing.

Data centres require continuous, high-quality power. This increases the value of generation sources that can provide round-the-clock electricity alongside renewable power and storage.

Adani is also expanding hydroelectric and pumped-storage capacity. Through its partnership with Bhutan’s Druk Green Power, the group plans to jointly develop up to 5GW of hydropower and pumped storage.

The portfolio increasingly resembles a full energy system rather than a collection of individual generation assets. Thermal power provides dispatchability, renewables lower emissions, storage balances variability and nuclear could add low-carbon baseload.

This strategy also carries metals implications. Nuclear, grids, data centres and transmission infrastructure require large volumes of copper, aluminium, specialty steels, zirconium alloys and other engineered materials.

If Adani executes even part of the 10GW nuclear target, India’s nuclear supply chain will need more qualified equipment, materials, engineering and fuel-cycle capacity.

The Metalnomist Commentary

Adani’s nuclear plan shows that India’s power strategy is moving toward a broader mix rather than a renewables-only model. The industrial opportunity will extend beyond generation into grids, specialty metals, nuclear-grade materials and long-term power infrastructure.

Adani Green BESS Expansion Makes Khavda a Major Grid Storage Platform

Adani Green Energy

Adani Green BESS capacity has reached 3.37GWh at the Khavda renewable energy park in Gujarat, marking a major step in India’s effort to make large-scale renewable power more reliable and dispatchable. Adani Green Energy added 2GWh to the 1.37GWh installed in March.

Adani Green BESS development at Khavda is significant because the project is now the largest single-location battery storage installation outside China, according to the company. The system is co-located with AGEL’s 30GW renewable energy project, of which 9.9GW is already operational.

Adani Green BESS expansion also signals how India’s clean energy transition is moving beyond generation capacity alone. Solar and wind projects need storage to manage intermittency, stabilise grids and supply power during peak demand periods.

The company plans to scale its storage footprint quickly. It is targeting more than 10GWh of new capacity by March 2027 and aims to reach 50GWh over the next five years.

Khavda Storage Strengthens Renewable Power Dispatchability

The Khavda BESS uses lithium-ion battery technology integrated with advanced energy management systems. This allows faster grid response, better stability and more reliable renewable power delivery.

This matters because India is adding renewable power at scale, but grid flexibility remains a major constraint. Battery storage helps convert variable solar and wind generation into usable power during high-demand periods.

AGEL said the 3.37GWh system can power about 1mn homes for a full day. It can also meet peak electricity demand in cities such as Indore or Chandigarh, or supply the entire state of Goa.

The Khavda project therefore shows how battery storage is becoming core electricity infrastructure. It is no longer only a backup tool or pilot technology.

For India, this type of storage capacity supports energy security, renewable integration and reduced dependence on fossil fuel peaking power. It also strengthens the case for more domestic battery materials, cell manufacturing and power electronics capacity.

Battery Storage Growth Lifts Materials and Supply-Chain Demand

Large BESS projects create demand across several material chains. Lithium-ion batteries require lithium, graphite, copper, aluminium, separators, electrolytes, battery management systems and thermal control technologies.

Copper demand is also supported by cabling, grid connections, transformers and power conversion systems. Aluminium can benefit through enclosures, busbars, structural systems and cooling components.

India’s rapid storage targets could therefore deepen demand for battery raw materials and downstream manufacturing. The country will need reliable supply chains for cells, modules, inverters and grid equipment if it wants to scale from gigawatt-hours to tens of gigawatt-hours.

The Khavda system also highlights the strategic link between renewable energy and industrial policy. Battery storage deployment can create demand signals for local manufacturing, recycling and critical minerals processing.

However, scaling to 50GWh will require capital, land, grid integration, battery procurement and long-term project economics. Storage must become not only technically viable, but also financially repeatable.

Adani Green’s commissioning shows that India is moving quickly. The next challenge is building a domestic ecosystem that can support storage deployment without relying too heavily on imported battery materials and equipment.

The Metalnomist Commentary

Khavda shows that the renewable energy race is becoming a storage race. India’s next clean-energy bottleneck will not be only solar or wind capacity, but the battery materials, grid equipment and financing needed to make renewable power dispatchable.

IMFA Ferro-Chrome Capacity Expansion to Make It India’s Largest Producer

Ferro-Chrome

IMFA ferro-chrome capacity is set to nearly double by the end of 2026 as Indian Metals and Ferro Alloys combines a Tata Steel asset acquisition with new furnace capacity at Kalinganagar in Odisha. The expansion will lift installed capacity beyond 500,000 t/yr, positioning IMFA as India’s largest ferro-chrome producer.

IMFA ferro-chrome capacity growth comes at a strategic moment for stainless steel raw materials. Ferro-chrome is a critical alloying input for stainless steel, and India’s rising stainless output requires more secure domestic alloy supply.

IMFA ferro-chrome capacity expansion also strengthens the company’s global position. Once complete, IMFA expects to rank among the foremost ferro-chrome producers worldwide.

The company is expanding while also restructuring its power mix. This matters because electricity is the dominant cost in ferro-chrome smelting and can decide competitiveness during weak pricing cycles.

Kalinganagar Expansion Strengthens India’s Ferro-Chrome Base

IMFA’s greenfield Kalinganagar project, known as KNR 1, will increase installed capacity to 384,000 t/yr by September from 284,000 t/yr at present. Pre-commissioning of the first furnace is scheduled for June.

The company also brought all four furnaces at its 100,000 t/yr Kalinganagar facility, known as KNR 2, on stream in March 2026. Together with the Tata Steel acquisition, these additions will significantly expand India’s domestic ferro-chrome platform.

This is industrially important because ferro-chrome supply links directly to stainless steel competitiveness. Domestic alloy availability can reduce exposure to imported material, freight costs and external supply shocks.

IMFA produced 267,300t of ferro-chrome in the April 2025-March 2026 financial year, up 2.7% from a year earlier. Sales rose by 3.9% to around 270,125t.

Quarterly output reached 68,506t in January-March, the strongest level in the period. That operating momentum gives IMFA a stronger base before the larger capacity increase takes full effect.

Captive Ore and Renewable Power Improve Cost Position

IMFA’s captive chrome ore position is central to its expansion strategy. Chrome ore output from its mines exceeded 800,000t for the first time, reaching 810,612t in 2025-26, up 15.5% from a year earlier.

Underground mining accounted for 536,000t of output. This captive supply gives IMFA better raw material control as it scales ferro-chrome production.

Energy strategy is the other major factor. IMFA plans to start 70MWp of hybrid renewable energy supply in July-September and has a binding deal for another 65MWp by June 2027.

Renewable power is expected to account for about 40% of the company’s power mix by March 2027. That shift could improve cost stability and reduce exposure to volatile power markets.

The move also supports lower-carbon ferro-alloy production. Stainless steel customers are increasingly watching the emissions profile of upstream alloy inputs, especially as export markets apply stricter carbon and sustainability rules.

IMFA also said it is exploring opportunities in critical minerals. That signals a broader growth strategy beyond ferro-chrome, although the core business remains the main focus.

For India, the expansion strengthens domestic alloy security. For IMFA, the challenge will be to ramp capacity while protecting margins, securing power and maintaining chrome ore supply discipline.

The Metalnomist Commentary

IMFA’s expansion shows that ferro-alloys are becoming part of India’s industrial security agenda, not just a stainless steel input. The real advantage will come from combining scale, captive chrome ore and lower-cost renewable power before global ferro-chrome competition tightens again.

India-US Critical Minerals Agreement Targets Mining, Processing and Recycling Security

India-US Critical Minerals

India-US critical minerals agreement marks a new step in efforts to secure mining, processing and recycling routes for strategic minerals and rare earth elements. The bilateral framework covers materials needed for electric vehicle batteries, semiconductors, solar panels, defence systems and artificial intelligence hardware.

India-US critical minerals agreement was signed on the sidelines of the Quad Foreign Ministers’ Meeting in New Delhi. Indian external affairs minister S Jaishankar and US secretary of state Marco Rubio attended the signing.

India-US critical minerals agreement reflects growing concern over concentrated supply chains. China dominates refining and processing for lithium, nickel, cobalt and rare earths, leaving India and the US exposed to supply disruption, export controls and price leverage.

The pact covers the full value chain, from extraction and processing to recycling, financing and long-term material management. That broader scope is important because raw mineral access alone does not create industrial supply security.

Processing Capacity Becomes the Strategic Priority

The agreement directly targets one of the biggest weaknesses in non-China critical mineral supply chains: processing. Mining resources matter, but value is captured when materials are refined, separated and qualified for industrial use.

China accounts for around 60-70% of global refining and processing capacity for key minerals such as lithium, nickel and cobalt. It also controls about 90% of rare earth refining.

That dominance gives China strong influence over battery materials, magnet inputs, semiconductor minerals and advanced manufacturing supply chains. It also makes diversification difficult because new projects must compete with established Chinese scale and cost advantages.

India has significant long-term rare earth potential. Its monazite reserves contain an estimated 7.23mn t of rare earth oxides, but commercial output remains limited.

The new framework could help India convert resource potential into usable supply. That will require investment in mining, separation, refining, metallurgy, environmental management and customer qualification.

For the US, India offers a strategic partner with mineral resources, industrial ambition and a large domestic market. For India, the US can provide financing, technology partnerships, customer demand and policy support.

Rare Earth Corridors Fit India’s Industrial Strategy

India’s latest budget introduced a policy framework to develop rare earth corridors across Odisha, Kerala, Andhra Pradesh and Tamil Nadu. These regions could become the foundation for a more integrated rare earth supply chain.

The corridor model matters because rare earth development requires clustering. Mining, mineral sands processing, separation, waste management, logistics and downstream manufacturing need to be connected.

India is also widening its international partnerships. It signed a critical minerals cooperation agreement with Brazil in February 2026, showing that New Delhi wants a diversified supply network across multiple geographies.

The India-US framework adds a stronger strategic layer. It links India’s domestic minerals policy with Washington’s push to reduce dependence on China in defence, batteries, semiconductors and AI-related hardware.

Recycling is also part of the agreement. That inclusion is important because recovered battery metals, rare earth magnets and industrial scrap can reduce long-term import dependence.

However, execution will decide the real impact. India must move faster on permitting, processing technology, financing and downstream customer development if it wants to become a serious critical minerals hub.

The agreement gives both countries a framework. The next challenge is turning policy language into operating mines, refineries, recycling plants and qualified material flows.

The Metalnomist Commentary

The India-US deal shows that critical minerals security is now a full-chain industrial policy issue. The countries that win will not only secure ore; they will control processing, recycling, financing and qualified supply for strategic end markets.

Hindalco Record Earnings Highlight Indian Aluminium Strength Despite Novelis Drag

Hindalco

Hindalco record earnings in the 2026 financial year show the strength of India’s aluminium market, even as problems at Novelis weighed on net profit. The Indian aluminium producer posted record revenue and Ebitda for both the full year and final quarter.

Hindalco record earnings were driven mainly by domestic aluminium operations. Full-year Ebitda rose by 7.3% to just over 380bn rupees, while revenue increased by 15% to Rs2.8 trillion.

Hindalco record earnings also extended into the fourth quarter. Ebitda reached Rs112bn in January-March, up 9% from a year earlier, while revenue rose by 20% to Rs781.3bn.

The result shows that Hindalco’s core Indian aluminium business remains resilient. However, the group’s profit performance was held back by the outage at Novelis’ Oswego hot-rolling mill in the US.

Domestic Aluminium Businesses Drive Record Performance

Hindalco’s upstream aluminium business delivered record earnings during the year. Full-year Ebitda rose by 16% to Rs188.8bn, while fourth-quarter Ebitda increased by 13% to Rs54.5bn.

This performance reflects strong operating leverage across Hindalco’s integrated aluminium chain. Upstream aluminium remains highly sensitive to metal prices, energy costs, alumina integration and domestic demand.

The downstream aluminium business also reached a record level. Full-year Ebitda rose by 55% to Rs9.8bn, while fourth-quarter Ebitda increased by 16% to Rs2.6bn.

That growth is strategically important. Downstream aluminium gives Hindalco higher-value exposure to rolled, extruded and fabricated products used in packaging, transport, construction, electrical and industrial markets.

India’s aluminium demand remains structurally supported by infrastructure growth, electrification, packaging consumption, renewable energy and manufacturing expansion. Hindalco’s record results show how domestic demand can offset weaker or more disrupted international operations.

Novelis Outage and Weak Copper TCs Weigh on Profit

Hindalco’s full-year net profit fell by 16.3% to Rs133.9bn. Fourth-quarter net profit dropped by nearly 51% to Rs26bn.

The main pressure came from the stoppage of Novelis’ Oswego hot-rolling mill in September. The outage disrupted US aluminium sheet supply and reduced Hindalco’s consolidated profitability.

Novelis has started commissioning the Oswego hot mill after major repairs. Coils are expected to come off the mill within the next few weeks, which should support a recovery in shipments and earnings.

The Oswego restart matters because Novelis is a major supplier of flat-rolled aluminium products to automotive, beverage can and industrial markets. A smoother ramp-up would reduce pressure on Hindalco’s global aluminium platform.

Hindalco’s copper business showed a mixed picture. The division posted record quarterly Ebitda of Rs9.1bn in the final quarter, but full-year Ebitda fell by 26.6% to Rs28.09bn.

The full-year decline reflected lower sales and weaker treatment and refining charges. This mirrors the wider copper market, where tight concentrate supply has reduced smelter economics even as copper demand remains strategically strong.

Hindalco therefore enters the new financial year with a strong domestic aluminium base, improving downstream earnings and a potential Novelis recovery. But copper smelting margins and the pace of Oswego’s restart will remain important earnings variables.

The Metalnomist Commentary

Hindalco’s results show that India’s aluminium demand is strong enough to deliver record operating earnings, even when global assets face disruption. The key upside now depends on Novelis’ Oswego restart and whether Hindalco can keep expanding higher-margin downstream aluminium while copper TC pressure continues.

GE Aerospace India Investment Expands Pune Engine Components Capability

GE Aerospace

GE Aerospace India investment will strengthen the company’s Pune manufacturing plant as the engine maker expands capacity for critical aircraft engine components. The Ohio-based company plans to invest 1bn rupees in advanced equipment, tooling and infrastructure at the site.

GE Aerospace India investment comes as global engine supply chains remain under pressure from rising aircraft production targets and strong aftermarket demand. The Pune upgrade will support component manufacturing for both widebody and narrowbody engine programmes.

GE Aerospace India investment will fund advanced inspection equipment, precision tools, gauges, fixtures and other infrastructure improvements. The company will also use the capital to develop new welding technologies.

The project reinforces India’s growing role in global aerospace manufacturing. It also shows how major engine makers are adding capacity in lower-cost, technically capable industrial locations to support production resilience.

Pune Upgrade Supports LEAP and Widebody Engine Programmes

The Pune plant will support parts manufacturing for GE Aerospace’s GE90, GEnx and GE9X widebody engine programmes. These engines serve major long-haul aircraft platforms and require high-quality, tightly controlled components.

The investment will also support the LEAP engine. GE Aerospace produces LEAP through CFM International, its joint venture with Safran Aircraft Engines.

LEAP is one of the most important narrowbody engines in the global aviation market. It powers Boeing 737 MAX aircraft and is one of the engine options for the Airbus A320neo family.

That makes the Pune upgrade strategically relevant. Any improvement in inspection, tooling, welding and component capability can help support higher output and reduce pressure across the engine supply chain.

The focus on precision tools and inspection equipment also matters. Engine components must meet strict quality and safety requirements, so capacity expansion depends on process control as much as factory space.

India Gains Role in Aerospace Supply-Chain Resilience

GE Aerospace’s investment fits a wider industry shift toward more geographically diversified production. Aerospace companies are looking for stronger regional manufacturing platforms as aircraft delivery schedules rise and suppliers face capacity constraints.

India is becoming more attractive because of its engineering base, manufacturing workforce and growing aerospace ecosystem. Investments like Pune can deepen the country’s role in certified component production.

The project also connects to materials demand. Higher engine component output supports consumption of nickel alloys, titanium, specialty steels, precision castings, forgings and advanced welding inputs.

For GE Aerospace, the investment is modest in financial scale but meaningful in supply-chain terms. It strengthens a specific manufacturing node tied to both current narrowbody demand and long-term widebody engine programmes.

For India, the move supports its ambition to move beyond basic manufacturing into higher-value aerospace production. The real opportunity lies in building qualified supplier depth around global engine programmes.

The Metalnomist Commentary

GE Aerospace’s Pune investment shows that engine supply-chain resilience depends on qualified component capacity, not only final assembly. India’s aerospace opportunity will grow if it can combine cost competitiveness with precision manufacturing, inspection capability and certified materials expertise.

India Renewable Curtailment Exposes Grid Bottleneck Behind Clean Power Growth

Ember

India renewable curtailment reached around 300GWh in January-March because of transmission constraints, showing that the country’s clean power buildout is now running ahead of grid readiness. The lost generation accounted for nearly two-thirds of India’s total renewable curtailment in the first quarter.

India renewable curtailment was concentrated in renewable-heavy northern and western grid pooling stations, especially Rajasthan and Gujarat. These regions have added large solar and wind capacity, but transmission expansion has not kept pace.

India renewable curtailment is strategically important because wasted clean power weakens project economics, increases peak power costs and delays the energy transition. It also highlights rising demand for grid materials, including copper, aluminium conductors, transformers, electrical steel and battery storage systems.

The curtailed volume represented around 1.5-2% of total renewable generation from interstate transmission system-connected plants in northern and western India. On 30 March alone, India lost 34GWh of renewable output because of insufficient transmission margins.

Transmission Delays Threaten Renewable Project Economics

India has achieved only around 80% of its annual transmission buildout targets over the past five years. That gap is now becoming visible in curtailment, grid connection delays and weaker returns for renewable developers.

One in four interstate transmission schemes scheduled for the 2026-27 fiscal year faces delays of at least one year. Around 20GW of renewable capacity is expected to face grid connectivity delays exceeding four months.

These delays carry direct financial consequences. A six to twelve-month delay in solar projects can reduce internal rates of return by 100-200 basis points because of lost early cash flows and higher financing costs.

The problem also affects India’s fuel import exposure. Curtailed renewable generation could have displaced costly gas-fired power during peak demand periods, reducing reliance on expensive LNG at a time when spot gas prices were elevated by the US-Iran war.

For metals markets, the message is clear. India’s renewable buildout now needs faster transmission investment, which means more demand for aluminium conductor, copper cable, transformers, substations, steel structures and grid equipment.

BESS Deployment Offers Near-Term Relief

Battery energy storage systems could provide a near-term solution at renewable pooling stations. Ember estimates that around 3-4GW of two-hour storage could absorb most curtailed renewable generation.

The economics are becoming more attractive. Stored solar power delivered at 7-8 rupees/kWh would remain below the Rs9-10/kWh many Indian states pay for peak-demand electricity.

This makes BESS deployment more than a technical fix. It is a cost-control tool, a grid-stability tool and a way to protect renewable project returns.

Battery storage demand also has materials implications. BESS deployment supports demand for lithium, phosphate, graphite, copper, aluminium, power electronics and thermal management systems, with lithium iron phosphate likely to remain important for stationary storage.

India’s southern region recorded no transmission-related renewable losses because renewable additions and transmission readiness were better aligned. That contrast shows that curtailment is not inevitable; it is a planning and execution problem.

India’s clean power transition will therefore depend on synchronising generation, transmission and storage investment. Solar and wind additions alone will not deliver energy security if power cannot move from renewable zones to demand centres.

The Metalnomist Commentary

India’s renewable curtailment shows that the energy transition is becoming a grid materials story. The next bottleneck is not only solar panels or wind turbines, but transmission capacity, storage deployment and the metals needed to move clean electricity.

India Critical Minerals Supply Chain Faces Funding Gap Despite Policy Push

Indonesia nickel mining

India critical minerals supply chain ambitions face a major financing test as the country tries to reduce dependence on imported lithium, cobalt, nickel and rare earth materials. A new report from the Institute for Energy Economics and Financial Analysis warns that funding gaps, slow policy execution and raw material import dependence could delay India’s strategy.

India critical minerals supply chain development is becoming urgent because the country imports 100% of the lithium, cobalt and nickel used in clean energy manufacturing. Demand is expected to rise as India targets 30% electric vehicle penetration by 2030, along with 230GW of solar capacity and 140GW of wind capacity.

India critical minerals supply chain policy has moved quickly on paper. The government launched the National Critical Mineral Mission in January 2025 with a seven-year budget of 343bn rupees to support exploration and auctions.

However, the mission still lacks enough direct capital expenditure support for large-scale mining, refining and processing. That is the central weakness in India’s current critical minerals push.

Exploration Targets Need Processing Capital

The National Critical Mineral Mission targets 1,200 exploration projects and more than 100 critical mineral block auctions by 2030-31. This can improve domestic resource visibility, but exploration alone will not create battery, magnet or semiconductor supply chains.

Critical minerals projects require large upfront capital, long permitting timelines and technical processing capability. Mining projects can take 10-15 years to move from exploration to commercial production, creating long periods of uncertainty for investors.

India has identified major resource potential. The country reported 5.9mn t of inferred lithium resources in Jammu and Kashmir as of 2023. It also holds 13.15mn t of monazite deposits containing an estimated 7.23mn t of rare earth oxides.

The Geological Survey of India also identified 482.6mn t of rare earth ore resources through exploration projects in February. These figures suggest significant geological potential, but they do not solve the refining and separation challenge.

Rare earths are a clear example. Monazite and rare earth ore must be separated, purified, converted into metals or alloys, and qualified by downstream users before they can support magnets, defence systems, electronics or clean energy applications.

India’s midstream sector also faces pressure from Chinese overcapacity. China controls around 60-70% of global refining and processing capacity for key minerals such as lithium, nickel and cobalt, and about 90% of rare earth refining.

That dominance suppresses margins and makes new Indian refining projects harder to finance. Without price support, offtake contracts or direct capital backing, investors may hesitate to fund projects that compete against established Chinese capacity.

Import Dependence Extends Beyond Battery Metals

India’s critical minerals strategy now reaches beyond battery materials. The government classified coking coal as a critical and strategic mineral in January to reduce import dependence and support steel expansion.

This widens the funding challenge. India aims to increase crude steel production capacity to 300mn t/yr by 2030 and 500mn t/yr by 2047. Its Mission Coking Coal targets domestic output of 140mn t/yr by 2030, up from 66.49mn t/yr in fiscal 2025-26.

These goals will require long-term investment in mining, washing, transport, processing and related infrastructure. That makes critical minerals policy a broader industrial financing issue, not only an energy transition issue.

India is also seeking overseas supply partnerships. It is working with Australia, Argentina, Peru, Chile, Zimbabwe, Mozambique, Malawi and Côte d’Ivoire to secure access to critical minerals.

State-backed Khanij Bidesh India is also pursuing overseas lithium and cobalt assets. These efforts can reduce raw material risk, but they still need downstream processing and domestic industrial integration.

The global funding requirement is enormous. The International Energy Agency estimates that mining and refining will need $915bn in new investment during 2026-35 under its Announced Pledges Scenario.

For India, the strategic question is how to convert policy ambition into bankable projects. Auctions and exploration can identify resources, but refining plants, processing hubs, offtake agreements and financing tools will decide whether domestic supply chains actually emerge.

The Metalnomist Commentary

India has recognised the critical minerals problem, but recognition is not the same as industrial capacity. The next stage must focus on project finance, refining economics and guaranteed demand, or India will remain dependent on imported materials despite its resource potential.

India Semiconductor Mission Adds GaN Micro-LED and Power Chip Projects

India, Semiconductor

India Semiconductor Mission has approved two additional semiconductor manufacturing projects in Gujarat, strengthening India’s push into compound semiconductors, advanced displays and power electronics. The new projects represent combined investment of about 39.36bn rupees.

India Semiconductor Mission support now includes the country’s first commercial mini/micro-LED display facility based on gallium nitride technology. This moves India beyond conventional chip assembly and into higher-value compound semiconductor manufacturing.

India Semiconductor Mission approvals have now reached 12 projects, with cumulative planned investment of about Rs1.64 trillion. The programme is becoming a central tool for reducing import dependence and building domestic semiconductor capability.

The two new projects will be developed by Crystal Matrix and Suchi Semicon. Their focus areas differ, but both support India’s broader objective of building a more complete electronics and semiconductor value chain.

GaN Micro-LED Facility Moves India Into Compound Semiconductors

Hyderabad-based Crystal Matrix will build an integrated compound semiconductor fabrication and assembly, testing, marking and packaging facility at Dholera. The plant will produce mini/micro-LED display modules and provide GaN foundry services.

The project will include epitaxy on 6-inch wafers, which is strategically important. Epitaxy is a core upstream process for compound semiconductor devices and can determine performance, yield and scalability.

The facility’s planned capacity is 72,000 m²/yr of mini/micro-LED display panels. These products can serve large-format televisions and signage, medium-sized screens for tablets, smartphones and vehicles, and micro-displays for smart glasses, smartwatches and extended-reality devices.

Gallium nitride gives the project industrial significance beyond display manufacturing. GaN is a critical material for high-brightness LEDs, power electronics, radio-frequency systems and advanced optoelectronics.

The Dholera project therefore adds a materials dimension to India’s semiconductor strategy. It links chip manufacturing policy with gallium-based compound semiconductor supply chains, where China, Taiwan, Japan, the US and Europe remain important competitors.

Power Semiconductor Assembly Supports Automotive and Industrial Demand

Suchi Semicon will establish an outsourced semiconductor assembly and test plant in Surat. The facility will focus on discrete semiconductor manufacturing for power electronics, analogue integrated circuits and industrial systems.

The planned capacity is 1.03bn chips/yr. This scale matters because India’s automotive, industrial automation and consumer electronics sectors need reliable domestic access to power and analogue components.

Power electronics are becoming more important as electrification spreads across vehicles, factories, appliances, renewable energy systems and charging infrastructure. Even basic discrete devices can become supply-chain bottlenecks when manufacturing is concentrated overseas.

The approval also strengthens Gujarat’s role as a semiconductor manufacturing hub. Dholera and Surat now join a growing cluster of projects intended to support fabrication, packaging, testing and electronics manufacturing.

Of the 10 projects approved earlier under the programme, two have started commercial shipments and two more are expected to begin operations soon. The government has also approved 104 start-ups to expand domestic chip design capability.

That combination is important. Manufacturing capacity alone is not enough. India also needs design companies, materials suppliers, equipment support, packaging capability and customers willing to qualify domestic semiconductor products.

The latest approvals show that India is trying to build depth across the value chain. GaN micro-LED fabrication brings advanced materials capability, while Suchi’s assembly and test plant supports volume supply for industrial and automotive electronics.

The Metalnomist Commentary

India’s semiconductor strategy is becoming more materials-driven, with GaN now entering the centre of its manufacturing push. The real test will be whether India can connect fabrication, epitaxy, packaging and design into a reliable domestic supply chain rather than isolated projects.

Moil Manganese Ore Prices Fall as Indian Steel Demand Weakens

Moil, Manganese Ore

Moil manganese ore prices have been cut by 4% for May as weak downstream steel demand and sluggish export bookings pressure India’s manganese market. The state-owned producer reduced prices across ferro-grade ore, silico-grade ore and fines.

Moil manganese ore prices for ferro-grade material with manganese content of 44% and above, as well as below-44% material, were lowered by 4% from April levels. The cut follows a sharp 17.5% increase in April for ore below 44% manganese content.

Moil manganese ore prices for 25% and 30% silico-grade ore and fines were also reduced by 4% for May. The move reflects a softer market environment in which domestic buyers are cautious and export opportunities remain limited.

The price cut highlights a wider imbalance in India’s manganese ore chain. Lower export demand has pushed more material into the domestic market, creating surplus supply across major trading hubs.

Weak Steel Demand Pressures Ferro-Grade Ore

Ferro-grade manganese ore demand remains tied closely to steel and ferro-alloy production. When steel demand weakens, alloy producers reduce feedstock buying and ore prices come under pressure.

India’s downstream steel market has been sluggish, limiting demand for manganese alloys and the ore used to produce them. This has made buyers more cautious about restocking, especially after the April price increase.

The 4% reduction is therefore a market-clearing move. Moil is adjusting prices to reflect weaker consumer appetite and rising domestic availability.

Export weakness has added further pressure. Reduced overseas bookings mean more ore is staying inside India, increasing competition among suppliers and traders.

This domestic oversupply is especially important for ferro-grade ore. Alloy producers can delay purchases when they expect further weakness, which slows market activity and reinforces downward pressure.

Higher Output Adds to Domestic Supply Overhang

Moil’s production has continued to rise despite weaker demand. The company produced around 164,000t of manganese ore in March 2026, up from 159,000t a year earlier.

Full-year output for April 2025-March 2026 reached 1.9mn t, compared with 1.8mn t in the previous fiscal year. This higher supply has entered a market already facing softer domestic and export demand.

The result is a supply overhang across key trading hubs. Even if production growth is modest, weaker buying can quickly create surplus conditions in the manganese ore market.

For alloy producers, lower ore prices may ease cost pressure. But the benefit depends on whether ferro-manganese and silico-manganese demand recovers enough to support production margins.

For Moil, the challenge is balancing output growth with market absorption. Higher production supports volume targets, but weak demand forces price adjustments when inventories rise.

The May price cut therefore sends a clear signal. India’s manganese ore market needs stronger steel and alloy demand before pricing power can return.

The Metalnomist Commentary

Moil’s price cut shows that India’s manganese market is being driven by demand weakness, not raw material scarcity. Until steel and export bookings improve, higher mine output will continue to weigh on ore pricing.

JSL Stainless Steel Sales Rise as Indian Demand Offsets Trade Pressure

JSL stainless steel

JSL stainless steel sales increased in the 2025-26 financial year as strong domestic demand supported broader adoption across infrastructure, mobility, defence and industrial sectors. Indian producer Jindal Stainless sold 2.5mn t of stainless steel during the year to 31 March, up 8% from 2.3mn t a year earlier.

JSL stainless steel sales were driven mainly by India’s internal market. Domestic sales accounted for 92% of annual volumes, showing that the company is prioritising local demand while global trade conditions remain uncertain.

JSL stainless steel sales dipped slightly in January-March to 641,743t from 649,857t in the previous quarter. The company attributed the decline partly to energy-related constraints linked to geopolitical uncertainty in the Middle East.

The result highlights India’s growing role as a stainless steel demand centre. Consumption is expanding beyond conventional industrial uses into electric vehicles, trailers, containers, real estate, defence, aerospace and infrastructure.

Domestic Demand Anchors Volume Growth

Indian stainless steel demand remained the main growth engine for JSL. Government-backed infrastructure programmes and rising preference for longer-life materials supported consumption across multiple end-use sectors.

Stainless steel is gaining ground where durability, corrosion resistance and lifecycle cost matter. This is particularly relevant for coastal infrastructure, transport equipment, public works, defence systems and industrial applications.

Electric vehicles and trailers are also becoming more important. These sectors use stainless steel for strength, corrosion resistance and long-term reliability in components exposed to demanding operating conditions.

JSL’s domestic focus gives it some insulation from weak or volatile export markets. A strong home market allows the company to keep capacity utilisation higher while managing margin pressure from global competition.

The company is also preparing for further growth. JSL plans to increase annual melt capacity to 4.2mn t during the current financial year ending 31 March 2027.

That expansion will strengthen its position in India’s stainless market. However, the company will need sustained domestic demand growth to absorb the additional capacity without weakening prices.

Imports and Energy Costs Shape Competitive Risk

JSL continues to face pressure from Chinese-origin and Vietnamese stainless steel imports. The company warned that substandard material is allegedly being rerouted through ASEAN countries, raising concerns about trade circumvention and domestic input quality.

This issue matters because import pressure can undermine local producers even when domestic demand is healthy. Low-priced or poor-quality imports can distort pricing, weaken margins and create risks for downstream users.

Trade defence therefore remains important for India’s stainless steel industry. Domestic producers need fair competition if they are expected to invest in higher-value capacity and support national manufacturing goals.

Energy costs are another risk. JSL said geopolitical uncertainty in the Middle East affected sourcing of propane, LPG and natural gas used in stainless steel manufacturing.

This shows how stainless steel production remains exposed to energy supply chains. Even when demand is strong, fuel availability and cost can affect output, margins and quarterly shipment performance.

Exports remained steady despite geopolitical conflicts and tariff uncertainty. JSL is building its presence in Japan, South Korea, Taiwan and Germany, supported by its value-added product portfolio.

This export strategy is important because value-added stainless products can help protect margins. Higher-specification products are less exposed to commodity price competition and more dependent on quality, qualification and customer relationships.

The Metalnomist Commentary

JSL’s performance shows that India’s stainless steel market is becoming a domestic demand story rather than an export-led one. The company’s next challenge is to defend quality and margins as imports, energy volatility and capacity expansion reshape competition.

Nalco Record Profit Highlights India’s Aluminium Market Strength

Nalco

Nalco record profit in FY2025/26 shows how stronger production volumes, higher aluminium prices and improved operating efficiency lifted India’s state-owned aluminium producer to a new earnings high. The company reported profit of 58.16bn rupees for the year to March, up 9.2% from a year earlier.

Nalco record profit was supported by revenue growth of 6.3% to Rs178.43bn. In the final quarter of the financial year, profit rose by 7% to Rs17.18bn, while revenue increased by 7.9% to Rs51.03bn.

Nalco record profit also reflects stronger market realisations. Three-month aluminium prices on the London Metal Exchange averaged $2,780/t through the financial year, up from $2,553/t in the previous year.

The result reinforces the importance of India’s aluminium value chain. Higher domestic metal sales and stable alumina output strengthen Nalco’s position as India expands infrastructure, power, transport, packaging and industrial manufacturing.

Record Aluminium Output Supports Domestic Demand

Nalco set new records for aluminium production and sales during the year. Cast aluminium production reached 472,000t, while aluminium sales totalled 474,000t.

Domestic sales reached a record 461,000t. This is strategically important because it shows that India’s internal aluminium demand remains strong enough to absorb most of Nalco’s output.

Aluminium consumption in India is tied to several structural growth sectors. Power transmission, construction, transport, packaging, electrical products and manufacturing all require more aluminium as industrial activity expands.

Higher domestic sales also reduce exposure to export volatility. For Nalco, a larger Indian customer base can improve sales stability when global trade flows are affected by tariffs, premiums or regional demand swings.

The production record also points to better operating execution. Higher volumes matter only when supported by plant reliability, cost discipline and stable raw material flows.

Nalco said stronger production, improved realisations and operating efficiency across business units drove the performance. That combination allowed the company to capture better market pricing while expanding output.

Alumina and Price Realisations Strengthen Earnings Base

Nalco also produced 2.3mn t of alumina hydrate and recorded 1.4mn t of alumina sales. Alumina remains central to the company’s integrated aluminium model.

Integrated alumina supply gives aluminium producers stronger cost control. It can also protect margins when external alumina markets tighten or when smelters face higher raw material costs.

The increase in LME aluminium prices was another major earnings driver. Higher benchmark prices improved realisations and helped lift profits even as cost pressures remained a risk across energy-intensive metal production.

For India’s aluminium sector, Nalco’s results show the value of scale and integration. Producers with bauxite, alumina and smelting capacity can benefit more directly when aluminium prices rise and domestic demand expands.

The company’s record performance also supports India’s broader industrial policy goals. Aluminium is essential for electrification, infrastructure, transport lightweighting, renewable energy equipment and downstream manufacturing.

Nalco’s challenge now is to sustain output discipline and margin strength if aluminium prices become more volatile. The market remains exposed to energy costs, global trade measures and supply disruptions.

The Metalnomist Commentary

Nalco’s record profit shows that India’s aluminium market is gaining strength from domestic consumption, not only export opportunity. The strategic advantage will belong to producers that combine integrated alumina supply, reliable smelting operations and exposure to India’s expanding industrial base.

Safran Uni Tritech LEAP Engine Components Deal Strengthens India Aerospace Supply Chain

Uni Tritech

Safran Uni Tritech LEAP engine components partnership will add Indian cast aluminium parts production to Safran’s global propulsion supply chain. The French aerospace manufacturer and Indian firm Uni Tritech signed a memorandum of understanding to manufacture components for LEAP-1A and LEAP-1B engines.

Safran Uni Tritech LEAP engine components production will take place in Dharwad, India. The agreement brings Uni Tritech into Safran’s supply chain at a time when aircraft engine makers are working to increase output and reduce bottlenecks across qualified component production.

Safran Uni Tritech LEAP engine components cooperation is strategically important because LEAP engines power major narrowbody aircraft programmes. LEAP-1A engines are used on Airbus A320neo family aircraft, while LEAP-1B engines power Boeing 737 MAX aircraft.

The deal also shows how India is moving deeper into aerospace manufacturing. The country is no longer only a market for aircraft and engines. It is increasingly becoming part of the qualified supplier base for global aerospace programmes.

Cast Aluminium Parts Add Capacity to LEAP Supply Chain

The agreement focuses on cast aluminium parts for LEAP engines. These components are part of a wider engine supply chain that depends on strict quality control, repeatable manufacturing and long-term supplier qualification.

This matters because LEAP engine deliveries have been rising as Airbus and Boeing push narrowbody production higher. Engine manufacturers need more capacity across castings, forgings, machined parts, coatings, assemblies and spare components.

Safran reported stronger engine deliveries in the first quarter, with little to no immediate impact from the US-Israel war against Iran. That performance highlights resilient demand, but it also increases pressure on suppliers to keep pace with production schedules.

Adding Uni Tritech to the supply chain can support diversification. For aerospace companies, geographic diversity is increasingly valuable as they manage logistics risk, capacity constraints and customer delivery commitments.

India’s role is also important from a cost and industrial policy perspective. Local aerospace manufacturing can support skilled employment, supplier development and deeper integration with global aircraft programmes.

India Gains Position in Aerospace Propulsion Manufacturing

The Dharwad production plan strengthens India’s position in aerospace propulsion components. Engine parts require more demanding qualification than many general industrial castings, making this a meaningful step for the local supplier base.

For Uni Tritech, the partnership gives access to a high-value global engine platform. For Safran, it adds another qualified manufacturing route for components needed to support LEAP production and aftermarket demand.

The agreement fits a broader trend in aerospace. Engine makers are widening their supplier networks while increasing investment in regions that can offer scale, technical capability and long-term manufacturing support.

India has been attracting more aerospace supply-chain activity as global manufacturers look for alternatives and additions to traditional production hubs. Partnerships like this can help the country move from assembly and lower-tier fabrication into more specialised component manufacturing.

The strategic value will depend on execution. Uni Tritech must meet Safran’s quality, delivery and process requirements consistently as LEAP engine demand continues to rise.

If successful, the partnership could become a model for further Indian participation in propulsion supply chains. That would support India’s ambition to become a larger supplier to global aerospace and defence manufacturers.

The Metalnomist Commentary

Safran’s agreement with Uni Tritech is small in headline value but important in supply-chain direction. As LEAP production rises, qualified component capacity in India could become a stronger part of the global aerospace manufacturing network.

SMEL Specialty Stainless Steel Capacity Plan Targets Higher-Value Indian Steel Demand

Shyam Metalics and Energy

SMEL specialty stainless steel capacity is set to expand by 2029 as India’s Shyam Metalics and Energy prepares new investments aimed at raising the share of higher-margin, value-added steel products in its portfolio. The company plans to invest an additional Rs27bn across two projects, subject to board approval.

SMEL specialty stainless steel capacity growth will be supported by a major stainless steel downstream expansion and a new special bar quality and specialty wire rod mill. Both projects are scheduled for commissioning by 2029.

SMEL specialty stainless steel capacity expansion reflects a broader shift in India’s steel industry. Producers are moving beyond commodity long products and into higher-specification materials for automotive, rail, engineering, infrastructure and coastal applications.

The proposed investment also aligns with India’s strategy to reduce dependence on imported cold-rolled stainless products. Local downstream capacity can improve supply security for manufacturers that need consistent quality, shorter lead times and domestic sourcing options.

SBQ and Specialty Wire Rod Mill Moves SMEL Into Premium Long Steel

SMEL plans to invest Rs9bn in an SBQ and specialty wire rod project with 800,000 t/yr of capacity. This will mark the company’s entry into premium long steel production.

Special bar quality steel is used in demanding applications where strength, consistency, machinability and metallurgical control are important. Key end-use sectors include automotive components, engineering products, industrial machinery, infrastructure and precision manufacturing.

Specialty wire rod also gives SMEL access to higher-value markets than conventional long steel. These products can serve fasteners, springs, bearings, welding wire, automotive parts and other engineered applications.

The investment is strategically important because premium long steel requires stronger process control and customer qualification. Producers must meet tighter chemistry, cleanliness, dimensional and mechanical property requirements.

For SMEL, the project could improve margins by shifting part of its output toward more specialised products. It also reduces exposure to lower-margin commodity steel cycles, where pricing is more vulnerable to oversupply and weak construction demand.

Stainless Expansion Targets Import Substitution and Downstream Integration

The larger part of the investment, Rs18bn, will go toward stainless steel downstream expansion. The plan includes melt shop expansion, higher hot-strip mill capacity, cold-rolling expansion and a new reversible cold-rolling mill.

SMEL also plans to add hot-rolled, cold and bright annealing and pickling lines. These process additions are important because stainless steel value increases significantly as producers move from melt shop output into rolled, finished and surface-treated products.

Cold-rolled stainless steel is especially important for automotive, rail, appliances, process equipment, industrial fabrication and coastal infrastructure. These markets need better surface quality, tighter tolerances and stronger corrosion performance.

The project could help reduce India’s reliance on imported cold-rolled stainless products. This matters as domestic demand grows and buyers seek more reliable local supply.

The expansion also improves SMEL’s integration across the stainless value chain. By adding more downstream processing, the company can capture more value from each tonne produced and offer a wider product range to industrial customers.

The key execution challenge will be qualification. Automotive, rail and infrastructure customers often require stable quality, repeatable processing and technical approvals before shifting supply.

If SMEL delivers the expansion on schedule, it could become a more important domestic supplier in India’s value-added stainless and specialty steel market. The company’s success will depend on ramp-up discipline, product quality and customer conversion, not capacity alone.

The Metalnomist Commentary

SMEL’s investment plan shows that Indian steel growth is moving toward quality, not only volume. The real opportunity lies in import substitution and higher-specification products, where domestic producers can capture more value from India’s industrial expansion.

India Aluminium Wire Rod Imports Face CVD Sunset Review on Malaysian Supply

India's Trade

India aluminium wire rod imports from Malaysia are under renewed trade scrutiny after the Directorate General of Trade Remedies started a sunset review of existing countervailing duties. The review comes ahead of the current duty’s expiry on 23 September.

India aluminium wire rod imports are strategically important because wire rod is a key semi-finished aluminium product for electrical conductors, cables, industrial wire and downstream manufacturing. Domestic producers argue that subsidised Malaysian supply could continue or recur if the duty expires.

India aluminium wire rod imports from Malaysia have been subject to countervailing duties since September 2021. The original levy followed a probe launched in June 2020 into alleged government subsidies supporting Malaysian producers.

Hindalco Industries, Vedanta and Bharat Aluminium Company filed the application that triggered the review. DGTR said the applicants represent a majority of India’s domestic output of the product covered by the duty.

Domestic Producers Warn of Subsidy and Trade Diversion Risk

The review covers aluminium wire and rod in coil form with diameters of 9-13mm. These products are used across electrical, cable and industrial supply chains, making them important to India’s aluminium downstream sector.

The applicants argue that Malaysian producers continue to benefit from government support. They identified 64 subsidy programmes, including 23 from the original investigation and 41 new schemes.

The alleged support includes tax breaks, export grants, preferential financing and below-market land and power rates. If confirmed, these measures could allow Malaysian producers to offer aluminium wire rod at artificially competitive levels.

Indian producers warned that removing the duty could harm the domestic industry. Their concern is that subsidised imports would pressure local pricing, reduce utilisation and weaken investment confidence in downstream aluminium capacity.

The case also includes a wider trade-flow risk. Recent increases in US Section 232 aluminium tariffs could divert Malaysian export volumes away from the US and toward India if the CVD lapses.

This matters because aluminium trade measures in one region can quickly reshape flows elsewhere. When one market becomes harder to access, exporters often look for alternative destinations with weaker trade barriers.

Review Could Shape India’s Downstream Aluminium Protection

The period of investigation for the sunset review is July 2024-December 2025. DGTR will assess whether the duty should be extended, modified or withdrawn.

Exporters, importers, users and the Malaysian government have been invited to submit comments through DGTR’s SETU portal. Their responses will help determine whether subsidised imports remain a material risk.

The outcome will matter for India’s aluminium value chain. Domestic producers want protection from subsidised competition, while downstream users may focus on supply availability and input cost.

India has been trying to strengthen local manufacturing across metals, electrical infrastructure and industrial materials. Maintaining fair competition in aluminium wire rod supports that policy direction, especially as demand grows from power transmission, cables, construction and manufacturing.

However, trade protection also needs balance. If duties raise input costs too much, downstream processors can become less competitive. The review will need to weigh domestic producer protection against the needs of users that rely on wire rod supply.

The case shows how aluminium is becoming more exposed to trade policy. Tariffs, subsidies, countervailing duties and regional trade diversion are now central to market positioning, not secondary issues.

The Metalnomist Commentary

India’s CVD review shows that aluminium downstream products are becoming part of a wider trade-defence strategy. The key issue is whether India can protect domestic wire rod capacity without raising costs for cable, conductor and electrical manufacturing supply chains.

India Aluminium Flat-Rolled Products Capacity Expands With Smel Sambalpur Plant

Smel Steel Structura

India aluminium flat-rolled products capacity is set to expand as Smel Steel Structural prepares to commission its new FRP and foil plant in Sambalpur, Odisha, by June. The facility will add 78,000 t/yr of aluminium product capacity to India’s downstream manufacturing base.

The Smel aluminium plant will have nameplate capacity of 60,000 t/yr for flat-rolled products with thicknesses of 0.3-4mm. It will also produce 18,000 t/yr of aluminium foil in the 6-40 micron range.

India aluminium flat-rolled products demand is rising across packaging, electrical, automotive, industrial and consumer goods sectors. Smel’s project is aimed at reducing import dependence while moving Shyam Metalics further into higher-value aluminium products.

The plant is at an advanced stage and is scheduled for commercial commissioning by June 2026. Its start-up will strengthen India’s ability to supply precision-engineered aluminium products from domestic capacity.

Downstream Aluminium Push Targets Higher-Value Markets

The Sambalpur plant will expand Shyam Metalics exposure beyond basic metals into value-added aluminium products. Flat-rolled products and foil typically serve higher-margin markets than upstream or semi-finished materials.

Packaging is likely to be a key demand channel. Aluminium foil is widely used in food, pharmaceuticals and consumer packaging, where barrier performance, light weight and hygiene are critical.

Electrical and automotive applications also offer growth potential. Aluminium flat-rolled products can support heat exchangers, electrical components, vehicle lightweighting, industrial equipment and consumer goods manufacturing.

The project fits India’s broader industrial strategy. Domestic aluminium consumption is expected to rise as manufacturing, infrastructure, mobility and consumer sectors expand. Local downstream capacity can reduce reliance on imported rolled products and improve supply security for Indian converters.

Margin Expansion Depends on Product Mix and Efficiency

Shyam Metalics expects the Sambalpur unit to lift consolidated operating margins by 40-50%. The company attributes this to a higher-value product mix and improved operating efficiencies.

The parent group has total installed metal capacity of 16.78mn t/yr and captive power capacity of 467MW. Captive power is important because aluminium processing remains energy-intensive, even when downstream operations are less power-heavy than primary smelting.

The commercial success of the plant will depend on quality consistency, customer qualification and utilisation. Aluminium foil and precision flat-rolled products require tight process control, surface quality and reliable thickness tolerances.

If Smel can ramp smoothly, the facility could help India capture more value inside its aluminium chain. It would also support domestic buyers seeking local supply in packaging, electrical and automotive markets.

The Metalnomist Commentary

Smel’s Sambalpur plant shows India’s aluminium strategy moving downstream into higher-value rolled and foil products. The key test will be whether the company can convert new capacity into qualified, consistent supply for demanding packaging, electrical and automotive customers.

Hindustan Zinc Refined Metal Capacity Target Signals Major Indian Zinc Expansion

Hindustan Zinc

Hindustan Zinc refined metal capacity could nearly double by FY2030 as the Indian producer advances a major expansion programme. The company aims to lift refined metal capacity from 1.12mn t/yr today to 2mn t/yr by the April 2029-March 2030 fiscal year.

Hindustan Zinc refined metal capacity growth will begin with an approved 250,000 t/yr integrated zinc smelter expansion at Debari. The project will raise total refined metal capacity to 1.38mn t/yr, with completion targeted in the second quarter of FY2028-29.

Hindustan Zinc refined metal capacity could then rise further through two additional proposed integrated smelter projects, one for zinc and one for lead. These projects remain subject to board approval but would take total capacity to the company’s 2mn t/yr target.

The expansion is strategically important for India’s metals supply chain. Zinc and lead are essential for galvanised steel, infrastructure, batteries, automotive components, construction and industrial manufacturing.

Debari Expansion Anchors HZL’s Smelting Growth

The Debari zinc smelter expansion is the first major approved step in HZL’s capacity roadmap. The 250,000 t/yr project will strengthen the company’s downstream processing base and increase its ability to convert mined metal into refined output.

This matters because mined metal growth alone does not create refined supply. Smelting and refining capacity must expand in parallel if India wants more domestic zinc availability for steel galvanising and industrial use.

HZL delivered record mined metal output of 315,000t in January-March. This was up 14% from the previous quarter and 2% from a year earlier.

Full-year mined metal production reached a record 1.11mn t in FY2025-26, up from 1.09mn t a year earlier. Higher ore output and improved grades at the company’s underground mines in Rajasthan supported the increase.

However, refined metal sales slipped slightly to 1.04mn t from 1.05mn t a year earlier. Debottlenecking work at the Chanderiya and Dariba smelters weighed on output.

That contrast shows why smelter investment is central to the company’s growth plan. HZL has strong upstream production, but refined metal capacity and operating stability will determine how much value it captures.

Silver Capacity Adds Energy Transition Exposure

HZL is also targeting major growth in silver production. The company aims to lift silver capacity to 1,500 t/yr by FY2029-30.

Saleable silver production rose by 11% from the previous quarter to 176t in January-March. Full-year silver output reached 627t.

The silver target adds another strategic layer to HZL’s expansion. Silver demand is supported by solar panels, electric vehicles, electronics and electrical applications.

This gives HZL exposure beyond traditional zinc and lead markets. As India expands solar power, electrification and electronics manufacturing, domestic silver availability could become more valuable.

The company’s integrated position is important. HZL can link mining, smelting, refining and by-product recovery, giving it a stronger platform than producers focused only on one stage of the value chain.

For India, the expansion supports domestic metals security. Higher zinc, lead and silver capacity can reduce import exposure and strengthen supply for infrastructure, renewable energy and manufacturing.

The key challenge will be execution. HZL must complete the Debari expansion, secure approvals for the next smelter projects and maintain mined metal growth from Rajasthan.

The Metalnomist Commentary

HZL’s growth plan shows that India is building deeper domestic capacity in core industrial metals, not only critical minerals. The combination of zinc, lead and silver expansion gives the company a stronger role in infrastructure, galvanised steel and energy transition supply chains.

Eramet Manganese Ore Volumes Rise Despite Lower Gabon Mine Output

Eramet Manganese

Eramet manganese ore volumes increased in the first quarter as stronger transportation and external sales offset lower mine production from Comilog’s Moanda operations in Gabon. The French multi-metals group transported 1.61mn t of manganese ore in January-March, up 16% from a year earlier.

Eramet manganese ore volumes are on course to reach 6.4mn-6.8mn t for the full year. This suggests that logistics performance and inventory movement remain strong despite weaker quarterly production.

Eramet manganese ore volumes matter because Gabon is one of the world’s key manganese ore supply sources. Stable exports from Comilog support alloy producers in steelmaking markets, especially outside China.

Manganese ore production at Moanda fell by 11% on the year to 1.59mn t in the first quarter. However, external ore sales rose by 10% to 1.36mn t, showing that market deliveries remained resilient.

Alloy Output Supports Manganese Chain

Eramet’s manganese alloy production rose by 4% on the year to 168,000t in the first quarter. Sales increased by 6% to 158,000t.

The company produces manganese alloys across six sites in Norway, the US, France and Gabon. This gives Eramet exposure to both upstream ore and downstream alloy markets.

Manganese alloys are essential inputs for steelmaking. Ferro-manganese and silico-manganese improve strength, hardness and deoxidation performance in steel production.

The increase in alloy output indicates that downstream demand remained sufficient to support production. This is important at a time when some regional steel markets are under pressure from weak construction activity and cautious buying.

Eramet’s integrated position gives it flexibility. Higher transported ore volumes support external customers, while alloy production allows the company to capture additional value further along the manganese chain.

India Demand Offers Support as China Remains Weak

Eramet expects manganese ore demand to increase slightly in 2026. Growth is expected to come from higher alloy production in India and other non-China markets.

India is becoming more important in the manganese market because of steel production growth and alloy capacity expansion. Stronger Indian alloy output can support ore demand even when Chinese consumption is weaker.

China remains a pressure point. Eramet expects manganese ore demand in China to stay under pressure, reflecting slower steel demand and weaker market conditions.

This creates a more regionalised manganese outlook. Suppliers with access to growing alloy markets outside China may be better positioned than those heavily dependent on Chinese demand.

For Eramet, the key issue will be maintaining transported volumes while improving mine output. If Moanda production recovers and alloy demand remains steady, the company can strengthen its position across both ore and alloy markets.

The Metalnomist Commentary

Eramet’s first-quarter figures show that manganese supply strength depends as much on logistics and sales execution as mine output. India’s alloy growth could become a more important demand anchor if China’s steel-linked manganese consumption remains weak.