BHP renewable power for copper projects accelerates South Australia’s low-carbon shift

BHP

BHP renewable power for copper projects is moving from strategy to execution in South Australia. The new deals with Neoen link Olympic Dam, Carrapateena and Prominent Hill to dedicated wind and battery assets, reshaping their long-term emissions profile. As a result, BHP renewable power for copper projects is becoming central to the group’s decarbonisation roadmap and its compliance with Australia’s safeguard mechanism.

Wind, storage and safeguard compliance for Olympic Dam

BHP will source 100MW of renewable electricity from Neoen’s 300MW Goyder North wind farm and 200MW Goyder battery. This follows an earlier contract for 70MW from Goyder South, which has supplied Olympic Dam since July. Together, these agreements should cover about 70pc of BHP’s copper-related electricity demand in South Australia by 2030.

Olympic Dam falls under Australia’s safeguard mechanism, where on-site generation counts towards covered scope 1 emissions. In 2023-24, Olympic Dam produced 244,321t of CO₂e, staying just below its 246,875t baseline. Therefore, BHP renewable power for copper projects is not just an ESG narrative but a direct tool for avoiding the surrender of additional ACCUs or safeguard credits.

Meanwhile, BHP still surrendered 47,000 ACCUs across 16 other facilities, including iron ore, coal and nickel operations. This highlights how decarbonisation progress remains uneven across the portfolio. However, the South Australian power strategy shows how dedicated renewable contracts can reduce both compliance risk and long-term power-price exposure.

Copper decarbonisation, diesel displacement and long-term risk

BHP is targeting a 30pc cut in operational greenhouse gas emissions by 2029-30 versus 2019-20 levels. The group has already reduced operational emissions to 8.7mn t CO₂e, a 36pc decline from that baseline. In this context, BHP renewable power for copper projects provides a tangible bridge between climate commitments and actual asset-level performance.

The company ultimately aims for net-zero operational emissions by 2050, mainly by displacing diesel in its mining fleets. Progress here has lagged because of technical delays in low-emission vehicle deployment. However, locking in large-scale renewable power for copper operations buys valuable time while mobile-equipment solutions mature.

For customers and policymakers, BHP renewable power for copper projects offers a clearer line of sight to lower-carbon copper supply. This matters as OEMs, grid operators and EV supply chains increasingly differentiate between standard and low-emission copper units. It also strengthens South Australia’s positioning as a hub for renewable-powered mining and processing.

The Metalnomist Commentary

BHP’s structured shift into contracted wind and storage underscores how decarbonisation is becoming a core competitiveness issue for copper miners. For metals buyers, the next phase will involve translating these renewable power deals into quantifiable, auditable carbon advantages at the cathode, rod and cable level.

Clean Power Growth Will Reshape Global Electricity Markets by 2030

Renewables and nuclear

Clean power growth is set to reshape global electricity markets by 2030. The IEA expects renewables and nuclear to provide half of the world’s electricity by then. This shift will happen even as global electricity demand rises strongly. As a result, clean power growth is becoming the dominant force in future power systems.

The scale of demand growth makes this transition more significant. Global electricity demand is expected to rise from 28,199 TWh in 2025 to 33,594 TWh in 2030. The IEA sees demand growing at an average annual rate of 3.6pc through 2030. Therefore, global electricity markets are not just decarbonising. They are also expanding rapidly.

This demand surge is being driven by structural changes in the economy. Industry is using more electricity, electric vehicle adoption is rising, and air conditioning demand is growing. Data centres and artificial intelligence are also adding a new layer of power consumption. Consequently, power demand growth is becoming one of the biggest industrial themes of the decade.

Renewable Power Generation Is Overtaking Coal in a Bigger Market

Renewable power generation is now moving ahead even as total electricity use climbs. The IEA said renewables are in the process of overtaking coal-fired generation after nearly matching it in 2025. Solar was especially important last year, offsetting weaker wind speeds and softer hydropower output. As a result, renewable power generation is now carrying more of the global power system.

The forecast growth is substantial. Renewable generation is expected to increase by around 1,050 TWh each year through 2030. Solar alone will account for more than 600 TWh of that annual increase. Therefore, solar remains the clearest growth engine inside the broader clean power expansion.

Coal will still remain the single largest source of electricity through 2030, but its position is weakening. The IEA expects coal-fired generation to contract by 0.9pc per year from 2026 to 2030. A plateau in Chinese coal generation is one of the main drivers behind this trend. Meanwhile, renewables and nuclear together are expected to rise from 43pc of global generation in 2025 to 50pc by 2030.

Power Demand Growth Will Test Grids, Flexibility, and Investment

Power demand growth will also expose weaknesses in grid infrastructure. The IEA warned that power systems need far more investment in grids and flexibility. More than 2.5TW of projects are currently stuck in connection queues worldwide. Therefore, grid expansion may become as important as generation investment itself.

Gas-fired generation will still play a support role in this transition. The IEA expects gas-fired power output to grow by 2.6pc per year through 2030. Stronger demand in the US and the Middle East will support that growth. As a result, global electricity markets are moving toward a more mixed system, not a simple fossil-to-renewable swap.

Emissions trends show why this shift matters. The IEA expects the rise of renewables to keep power-sector CO2 emissions roughly flat through 2030 despite higher demand. That would mark a significant change after years of steady emissions pressure. Consequently, clean power growth is becoming the main reason power-sector emissions are no longer rising with electricity use.

The Metalnomist Commentary

This forecast matters because it confirms that the power transition is no longer a niche policy story. Electricity is becoming the central growth engine of the global energy system, and clean power is taking a larger share of that expansion. The next real bottleneck will not be ambition. It will be whether grids, storage, and system flexibility can keep pace.

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.

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.

Alcoa Massena aluminum smelter investment anchors long-term US primary capacity

Alcoa Massena aluminum smelter

Alcoa Massena aluminum smelter investment marks a renewed commitment to US primary aluminum production and regional industrial jobs. The company has secured a 10-year, 240MW renewable power contract from the New York Power Authority, with extension options. This long-dated Massena renewable power deal underpins operations and gives Alcoa confidence to reinvest capital in the site. As a result, the plant’s future looks more secure in a market focused on low-carbon metal.

Alcoa will pair the new power deal with a $60mn modernization of the smelter’s anode baking furnace. The project, partially supported by a $6mn grant from Empire State Development, will run through 2028. Modern anode technology should improve energy efficiency and process stability, supporting lower emissions per tonne of primary aluminum. Therefore, the Alcoa Massena aluminum smelter investment aligns commercial resilience with decarbonisation goals.

Renewable power underpins Massena smelter competitiveness

The Massena renewable power deal is central to Alcoa’s cost and carbon strategy at the smelter. The 240MW allocation of renewable energy, starting 1 April, lowers exposure to volatile market power prices. It also strengthens Alcoa’s ability to market lower-carbon primary aluminum to automotive and packaging customers. Over time, options for two additional five-year terms could extend that visibility well beyond 2035.

Access to dedicated hydropower and other low-carbon sources is increasingly a competitive advantage in smelting. Many global smelters face pressure from higher fossil-based electricity prices and tightening climate policies. By contrast, Massena’s power structure gives Alcoa a stable platform for long-term contracts with downstream buyers. Consequently, the Massena renewable power deal reinforces the strategic value of US smelting capacity.

Modern anode baking furnace supports capacity and ESG goals

Upgrading the anode baking furnace is a critical part of the Alcoa Massena aluminum smelter investment. Carbon anodes are consumed in the electrolytic process, combining with oxygen from alumina and leaving molten aluminum. Furnace design and performance directly affect energy use, cell stability and overall emissions. New equipment should lift reliability, extend anode life and improve current efficiency in the pots.

It remains unclear whether nameplate capacity of 130,000 t/yr will change after the project. However, better anode performance often translates into higher effective output and lower unit costs. That, in turn, can support longer-term employment and justify further incremental improvements at the site. In a market where buyers increasingly demand traceable low-carbon aluminum, the Alcoa Massena aluminum smelter investment positions the plant as a more attractive supplier.

The Metalnomist Commentary

This package of renewable power and furnace modernisation shows how policy support can unlock private capital for hard-to-abate industries. If Massena’s upgraded profile leads to greener, more competitive primary aluminum, it could become a blueprint for other legacy smelters in North America. For downstream OEMs, a more secure and cleaner US supply base reduces dependence on higher-carbon imports.

Hillside Aluminium Smelter Future Hinges on South32 Eskom Power Deal

Hillside Aluminium

Hillside aluminium smelter operations beyond 2031 will depend on a new long-term power agreement between South32 and South African utility Eskom. The companies are negotiating a replacement contract for the KwaZulu-Natal smelter before its current discounted electricity supply arrangement expires.

The Hillside aluminium smelter is one of South Africa’s most important energy-intensive industrial assets. Securing competitively priced power is essential because aluminium smelting depends on stable, large-scale and affordable electricity.

South32 and Eskom have created a working group to explore ways to bring competitively priced renewable energy into South Africa’s national grid. The goal is to support Hillside’s future power needs while also benefiting Eskom’s wider customer base.

The talks come shortly after South32 moved its Mozal aluminium smelter in Mozambique into care and maintenance after failing to secure a new electricity supply agreement. That decision highlights the strategic risk facing smelters when power contracts expire without a commercially viable replacement.

Power Security Becomes the Main Aluminium Constraint

Electricity is the defining cost factor for primary aluminium. Smelters need continuous power, and even modest changes in tariffs can determine whether production remains competitive.

The Hillside aluminium smelter currently benefits from a discounted power contract that runs until 2031. A new agreement would secure the plant’s operating future beyond that date and reduce uncertainty for workers, suppliers and downstream customers.

South32’s experience at Mozal shows what is at stake. The Mozambican smelter was moved into care and maintenance after its electricity contract expired at the end of March and no new agreement was reached.

That outcome gives urgency to the Hillside negotiations. Without a competitive long-term power solution, South32 could face difficult decisions about one of its key southern African aluminium assets.

For Eskom, the talks also carry wider industrial policy significance. South Africa needs to preserve energy-intensive manufacturing while managing grid constraints, decarbonisation pressure and the transition toward cleaner power.

Renewable Power Could Support Low-Carbon Aluminium

The working group’s focus on renewable energy shows how aluminium supply is becoming tied to decarbonisation. Buyers increasingly want lower-carbon aluminium, especially in automotive, packaging, construction and industrial applications.

A renewable-linked power solution could improve Hillside’s long-term competitiveness. It would help South32 reduce emissions exposure while keeping the smelter connected to South Africa’s industrial base.

However, the challenge is execution. Renewable power must be competitively priced, reliable and integrated into the national grid in a way that supports continuous smelter operations.

The agreement could also set a precedent for other energy-intensive industries in South Africa. If Eskom and South32 can structure a viable low-carbon power model, it may help attract or retain industrial investment in metals, chemicals and manufacturing.

For the aluminium market, the message is clear. Future smelting capacity will depend less on ore or alumina access alone and more on long-term power security, grid reliability and carbon intensity.

The Metalnomist Commentary

The Hillside power talks show that aluminium competitiveness is now an energy strategy question. South32 and Eskom must prove that South Africa can keep heavy industry alive while moving toward lower-carbon electricity.

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.

Rio Tinto signs new wind deal for Kennecott to lock in 78.5MW renewable power via VPPA

Rio Tinto, Australia

Rio Tinto signs new wind deal for Kennecott to expand renewable power coverage for its Utah copper operations. Rio Tinto signed a 15-year renewable energy supply agreement with Terra-Gen for the Kennecott copper mine near Salt Lake City. Rio Tinto signs new wind deal for Kennecott to secure 78.5MW of renewable energy from TerraGen’s Monte Cristo I wind farm in Texas. Therefore, the miner is tightening the link between low-carbon electricity and copper supply reliability.

TerraGen will supply power from the 238.5MW Monte Cristo I wind farm in Hidalgo County, Texas. The wind facility began commercial operations this week. Meanwhile, Rio Tinto structured the purchase through a virtual power purchase agreement. As a result, the company can decarbonize its electricity footprint without requiring direct physical delivery.

VPPA structure extends the Kennecott decarbonization roadmap

Rio Tinto signs new wind deal for Kennecott as part of a broader decarbonization push at the site. The company installed a 5MW solar plant in 2023 and is close to finishing a 25MW solar plant. Meanwhile, the VPPA adds longer-term renewable coverage and price visibility. Therefore, Kennecott’s energy strategy is moving from pilot assets to portfolio-style procurement.

This approach is increasingly common for energy-intensive metals. VPPAs can hedge power exposure and reduce reported emissions intensity. However, they require careful accounting and contract management. As a result, the structure matters as much as the headline megawatts.

Integrated mining, smelting, and refining makes energy a strategic lever

Kennecott is an integrated copper complex, not only a mine. The site includes a concentrator, smelter, and refinery, plus transport and storage infrastructure. Meanwhile, electricity and heat costs influence operating margins across the chain. Therefore, renewable procurement can support both decarbonization targets and resilience during power market volatility.

Copper buyers are also tightening sustainability requirements. Lower-carbon power can help miners defend market access and premium contracts. However, the benefits depend on consistent operations and transparent emissions reporting. As a result, Rio Tinto signs new wind deal for Kennecott with both cost and customer strategy in mind.

The Metalnomist Commentary

Copper is becoming an electricity story as much as a mining story. Meanwhile, integrated smelting sites face greater scrutiny on Scope 2 emissions. Therefore, long-dated VPPAs will keep spreading across the copper industry as customers demand verified low-carbon supply.

UK Seventh Carbon Budget Sets 87% Emissions Cut Target for 2038-42

Climate Change Committee

The UK seventh carbon budget sets a legally binding ceiling of 535mn t of CO₂ equivalent for 2038-42, equivalent to roughly an 87% reduction in greenhouse gas emissions from 1990 levels. The target includes the UK’s share of international aviation and shipping emissions.

The UK seventh carbon budget gives energy-intensive industries a clearer long-term decarbonisation trajectory. Steel, aluminium, chemicals, transport and other industrial sectors will increasingly need to align capital spending with lower-carbon power, electrification and emissions reduction.

The UK seventh carbon budget follows the recommendation of the independent Climate Change Committee. The CCC identifies electrification and low-carbon electricity as the largest contributors to its pathway, accounting for around 60% of required emissions reductions by 2040.

The target strengthens the investment signal around renewable power, nuclear energy, grids and industrial electrification. It also reinforces the UK’s legally binding objective of reaching net-zero greenhouse gas emissions by 2050.

Industrial Decarbonisation Will Require More Clean Power and Metals

The new carbon budget has direct implications for UK manufacturing. Deep emissions reductions will require industry to replace fossil fuel consumption with electricity, low-carbon fuels and more efficient production processes.

For metals markets, that transition creates additional demand for copper, aluminium and electrical steel. Grid expansion, renewable power, electric transport and industrial electrification all require substantial quantities of conductive and structural materials.

The target can also increase pressure on high-emission materials producers. Steel and aluminium customers are increasingly tracking embedded carbon, while future investment decisions will depend more heavily on access to competitive low-carbon electricity.

Energy security is another part of the policy case. The UK government argues that greater reliance on domestic clean power can reduce exposure to volatile imported fossil fuel markets, while the CCC has similarly linked its recommended pathway with lower dependence on imported fuels.

This creates both risk and opportunity for industry. Companies with access to renewable power, recycling, efficient processing and lower-carbon technologies may gain an advantage as the emissions ceiling tightens.

Long-Term Target Gives Investors a Clearer Policy Signal

Carbon budgets cap total UK greenhouse gas emissions over five-year periods, giving companies a longer planning horizon than annual targets. The seventh budget extends that framework through 2042.

That certainty matters for infrastructure with long investment cycles. Power networks, nuclear projects, smelters, industrial plants and transport systems often require capital decisions many years before new capacity begins operating.

The government has said a specific delivery plan for the seventh carbon budget will follow, setting out how the target will be achieved. The existing Carbon Budget and Growth Delivery Plan covers earlier budgets through 2037.

The industrial challenge will therefore shift from setting the target to allocating the cost of delivery. Power availability, grid expansion, industrial support and technology investment will determine whether UK manufacturers can cut emissions without losing competitiveness.

The Metalnomist Commentary

The seventh carbon budget gives UK industry a clear direction, but the real test is whether clean electricity and grid capacity expand fast enough to support it. For metals producers, lower-carbon power could become as important to competitiveness as raw material cost.

Michigan BESS Projects Approved to Support Grid Reliability and Data Center Growth

Michigan BESS Projects

Michigan BESS projects received regulatory approval on 27 March, adding 1,332MW of battery energy storage capacity to support grid reliability, renewable power integration and large-load electricity demand. The Michigan Public Service Commission approved six battery energy storage system projects across two major demand areas.

Three of the Michigan BESS projects will provide a combined 1,000MW to support DTE Electric’s integrated resource plan. That plan calls for adding 15,000MW of solar and wind generation in Michigan, making storage capacity essential for balancing intermittent renewable output.

The remaining three projects, totalling 332MW, will support a 1,383MW data center being developed by Green Chile Ventures, an Oracle subsidiary. The storage assets are intended to improve reliability and reduce costs for customers as data center electricity demand rises.

Battery Storage Becomes Critical for Renewable Grid Planning

Battery energy storage systems are becoming a core part of Michigan’s clean power buildout. DTE Electric’s 1,000MW of approved storage will be tied to 20-year tolling agreements, giving the utility more flexibility as solar and wind capacity expands.

This matters because renewable power growth requires fast-response assets that can shift electricity from periods of high generation to periods of high demand. BESS projects can also reduce strain on the grid during peak periods and support more reliable power delivery.

Michigan BESS projects therefore represent more than a backup power investment. They are part of the infrastructure needed to make renewable generation useful at scale and to protect grid stability as electricity demand grows.

Data Center Demand Adds a New Storage Growth Channel

The data center-linked BESS projects show how artificial intelligence and cloud infrastructure are reshaping power markets. Green Chile Ventures must develop 1,383MW of energy storage to match the contracted demand of its data center project.

The approved 332MW is only the first phase of that requirement. Green Chile Ventures will bear the costs over 15 years, while DTE Electric will develop, own and operate the facilities.

This structure highlights a wider market trend. Data centers need faster power access, and battery storage can help bridge the gap between project timelines, grid constraints and customer affordability concerns. Michigan already hosts 74 data centers, with Detroit accounting for 32, making power infrastructure an increasingly important competitiveness factor.

The Metalnomist Commentary

Michigan BESS projects show that battery storage is becoming essential infrastructure for both renewable energy and AI-driven data center growth. The next bottleneck will not only be battery supply, but also transformers, grid equipment, copper, aluminium and permitting capacity.

Tomago Aluminium Smelter Gains NSW Support as Power Costs Threaten Capacity

Tomago aluminium

Tomago aluminium smelter will receive additional support from the New South Wales government as Australia seeks to prevent the 600,000 t/yr facility from closing when its current electricity contract expires in 2028.

Tomago aluminium smelter support forms part of NSW's 2026-27 budget, alongside federal negotiations over a new long-term power purchase agreement. The governments are trying to create an electricity cost structure that keeps one of Australia's largest industrial power users commercially viable.

Tomago aluminium smelter owner Rio Tinto had previously warned that the operation could close because of unsustainable electricity costs. Losing the facility would remove substantial domestic primary aluminium capacity and weaken Australia's downstream manufacturing supply chain.

The proposed support illustrates a broader challenge facing energy-intensive industries: governments want to preserve strategic domestic production while electricity systems undergo a costly transition toward renewable generation and new grid infrastructure.

Power Agreement Becomes Critical to Tomago’s Future

Australia's federal and NSW governments agreed in December 2025 to pursue a long-term support package for Tomago.

The proposal includes a fixed-price power purchase agreement designed to provide greater certainty over one of the smelter's largest operating costs.

In return, Tomago would commit to investing A$1bn in the facility over ten years from 2028.

That investment could help modernise the smelter and improve its competitiveness while Australia's electricity market changes around it.

Primary aluminium smelting requires enormous volumes of continuous electricity. This makes smelters particularly vulnerable to high wholesale power prices, network costs and uncertainty around future supply.

Tomago's 600,000 t/yr capacity also gives the negotiations strategic importance beyond the individual company. Closure would materially reduce Australian primary aluminium production and increase reliance on imported metal for domestic industrial users.

The government is therefore effectively weighing the cost of supporting power-intensive manufacturing against the economic and strategic consequences of losing the capacity altogether.

Renewable Infrastructure Could Reshape Australia’s Aluminium Economics

NSW is also allocating A$291mn for road upgrades supporting transport of equipment into renewable energy zones.

This infrastructure investment is relevant to Tomago because the long-term competitiveness of Australian aluminium increasingly depends on access to large volumes of affordable renewable electricity.

Aluminium smelters can potentially become major anchor customers for renewable generation because they consume power continuously at industrial scale.

However, the transition requires sufficient generation, transmission and firming capacity to maintain stable electricity supply around the clock.

The state budget also reflects the continuing importance of fossil fuel revenues during that transition. NSW has raised its royalty forecasts following higher thermal coal prices triggered by the global gas supply shock.

Coal royalty revenue is expected to remain substantial over the coming years even as NSW invests heavily in renewable infrastructure.

This creates a transitional industrial model in which existing resource revenues help finance the power system required for future low-carbon manufacturing.

For aluminium, the outcome at Tomago could become a test case. If governments and industry can establish a competitive long-term electricity framework, Australia could preserve primary metal capacity while gradually reducing its carbon intensity.

The Metalnomist Commentary

Tomago demonstrates that the future of primary aluminium will increasingly be decided by electricity economics rather than ore availability. Australia has abundant resources and renewable potential, but retaining smelting capacity requires turning that energy advantage into reliable industrial power prices.

Rio Tinto Boyne Smelters Secures A$2bn Australian Support for Renewable Aluminium

Rio Tinto

Rio Tinto Boyne Smelters will receive major government support as Australia moves to keep aluminium production viable during its energy transition. Canberra and Queensland will each provide A$1 billion over 10 years to support the 500,000 t/yr aluminium smelter at Gladstone.

The funding will be linked to production credits for aluminium made with renewable energy. In return, Rio Tinto will underwrite nearly A$7.5 billion in new energy generation and transmission in central Queensland.

Rio Tinto Boyne Smelters is strategically important because aluminium smelting is highly power-intensive. The agreement shows how Australia is using public funding to prevent industrial closures while shifting heavy industry away from coal-fired electricity.

Renewable Power Becomes Central to Aluminium Smelter Survival

The support package reflects the growing pressure on Australian metals processors. Rising energy costs and the phase-down of coal-fired generation have made long-term power security a critical issue for smelters, refiners, and steelmakers.

The plan to shift Rio Tinto Boyne Smelters toward renewable power was first flagged in 2024. Rio Tinto also indicated last year that the 1.68GW Gladstone coal-fired power plant could close on 31 March 2029.

BSL produced 370,000 tonnes of aluminium in 2025, below its 500,000 t/yr nameplate capacity. It remains Australia’s second-largest aluminium smelter after the 600,000 t/yr Tomago facility in New South Wales, which is also expected to receive major taxpayer support to remain open beyond 2028.

Australia Uses Industrial Policy to Protect Metals Capacity

Australian aluminium smelter support is becoming part of a wider industrial policy response. Federal and state governments have already pledged major funding for Whyalla steelworks, Glencore’s Mount Isa copper smelter, and Nyrstar’s smelters in Hobart and Port Pirie.

The Boyne agreement also connects aluminium production with carbon regulation. The facility is registered under Canberra’s safeguard mechanism and reported covered scope 1 emissions of 921,558t CO2e for the July 2023-June 2024 compliance year, below its baseline of 931,303t CO2e.

Rio Tinto owns 73.5% of Boyne, while YKK Aluminium, UACJ Australia, and Southern Cross Aluminium hold the remaining stakes. The ownership structure reinforces the smelter’s importance to both domestic and regional aluminium supply chains.

The Metalnomist Commentary

Australia is effectively deciding that aluminium smelting is too strategic to lose during the energy transition. The real test will be whether renewable power support can preserve industrial capacity without creating a permanent subsidy model.

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.

UCB Power BESS Production Gains Tax Support in Brazil

UCB Power

UCB Power BESS production will receive tax support as Brazil seeks to expand domestic manufacturing of battery energy storage systems. The Brazilian battery producer will benefit from reduced import tariffs on foreign components used in production.

UCB Power BESS production adds another industrial layer to Brazil’s growing energy storage market. The incentives will be administered through the Manaus Free Trade Zone framework, although specific tariff reductions have not been disclosed.

UCB Power BESS production also has implications for critical mineral demand. Lithium-ion storage systems require materials including lithium, nickel, cobalt, manganese, graphite, copper and aluminium across cells, electrical systems and enclosures.

The policy therefore supports more than battery assembly. It could help Brazil gradually build a domestic energy storage ecosystem around renewable power, grids and industrial electricity management.

Tax Incentives Strengthen Domestic Battery Manufacturing

Brazil’s Manaus Free Trade Zone provides tax incentives intended to encourage industrial production in the country’s northern region.

UCB Power will gain lower import costs for foreign components required in BESS manufacturing. This can improve the competitiveness of domestic production while Brazil develops more local supply capability.

The incentives remain subject to standard requirements within the Manaus framework, including environmental and research obligations.

Battery storage manufacturing remains dependent on imported cells, materials and electronic components in many emerging markets. Lower tariffs can therefore reduce the cost disadvantage faced by local manufacturers during the early stages of industry development.

UCB already operates battery factories in Manaus and Extrema, Minas Gerais. The company says its portfolio represents more than 7.8GWh of installed capacity.

That existing manufacturing base gives UCB a stronger position to expand into grid-scale and industrial energy storage as Brazilian electricity demand evolves.

BESS Growth Could Create New Critical Mineral Demand

Battery energy storage is becoming increasingly important as power systems integrate more intermittent renewable generation.

BESS installations can store electricity when supply is abundant and discharge it when demand rises, improving grid flexibility and helping industrial users manage electricity costs.

Lithium-ion technology currently dominates the market, creating demand across a broad range of battery materials.

For Brazil, this creates an opportunity to connect domestic battery manufacturing with its substantial mineral resource base. The country has resources across lithium, nickel, manganese and other materials relevant to energy storage.

However, mineral availability alone will not create an integrated battery industry. Brazil will need refining, active materials production, cell manufacturing and recycling capacity if it wants to capture more of the value chain.

Supporting BESS assembly is therefore an early step toward a broader industrial ecosystem rather than the endpoint.

The Metalnomist Commentary

Brazil has the mineral resources and renewable power base to build a larger battery industry, but the missing link remains downstream processing and cell production. UCB’s expansion can help create domestic demand that makes those investments more commercially attractive.

China Renewable Energy Plan Supports Metals Demand but Leaves Growth Uncertain

China, Renewable Energy Plan

China renewable energy plan for 2026-30 points to continued structural demand growth for copper, aluminium, lithium, vanadium and rare earths. However, the metals impact will depend on how far wind, solar, storage and grid investment move beyond targets that China is already close to reaching.

China renewable energy plan targets wind and solar at more than 50% of total installed power capacity by 2030 and positions them as the main source of power generation. The wording is important because wind and solar already account for around 48% of China’s installed power capacity.

China renewable energy plan therefore provides policy support but not necessarily a new demand shock. The key issue for metals producers is whether Beijing pushes deployment materially above the 50% threshold and introduces additional incentives for solar, storage and grid infrastructure.

China’s total installed power capacity reached 4,010GW by the end of May. Solar accounted for 1,260GW and wind for 660GW, with both sectors still growing at double-digit rates.

Copper and Aluminium Depend on How Far Renewables Expand

Renewable infrastructure remains a major source of metals consumption. Solar projects require aluminium for frames, mounting systems and electrical applications, while wind turbines consume aluminium, copper, speciality steels and rare earth permanent magnets.

Industry estimates put aluminium consumption at around 13,500t for every 1GW of solar capacity and up to 3,000t for 1GW of wind capacity. Further expansion could therefore create substantial incremental demand.

However, China is already close to the plan’s minimum capacity target. Wind and solar together represent about 48% of total installed capacity, leaving only a modest increase required to exceed 50%.

This has made market participants cautious. If deployment slows after the target is reached, incremental aluminium demand could be weaker than previous renewable investment cycles.

The outcome changes if actual capacity moves toward 55% or higher. Chinese policy targets are often designed with room for overachievement, meaning the final installed share could materially exceed the stated minimum.

Copper has a stronger structural demand case because renewable generation also requires transmission, substations, grid reinforcement and electrical equipment.

Copper demand from China’s wind and solar sectors is expected to reach around 1.85mn t this year, almost three times the 620,000t consumed in 2020. That growth demonstrates how renewable buildout is already reshaping Chinese copper consumption.

Storage and Charging Add Another Critical Metals Demand Layer

The plan extends beyond renewable generation. China is targeting 300GW of new energy storage capacity and 40mn electric vehicle charging units by 2030.

Storage deployment strengthens demand for lithium and other battery materials. Rapid renewable penetration increases the need to balance variable generation, making grid-scale batteries increasingly important to the power system.

Lithium consumption from energy storage could rise substantially over the next decade. However, strong demand growth does not automatically mean higher lithium prices because new mine and processing capacity may expand just as quickly.

Vanadium could also benefit if long-duration flow batteries capture part of China’s storage market. Rare earth demand may gain additional support from wind turbine generators and high-performance electric motors.

Charging infrastructure adds another copper and aluminium demand channel. Millions of additional charging points require cables, connectors, distribution equipment and grid upgrades.

The plan therefore supports a wider metals ecosystem than wind and solar installations alone. Generation, storage, charging and grid reinforcement all add material intensity to China’s energy transition.

The biggest uncertainty is execution. China has already built renewables at enormous scale, so future metals demand will depend on whether policy accelerates deployment beyond current momentum rather than merely formalising existing trends.

The Metalnomist Commentary

China’s new energy plan is supportive for metals, but the 50% wind-and-solar target alone is not the real story because the country is already close to it. The stronger demand signal will come from how aggressively Beijing expands storage, grids and renewable capacity beyond the minimum target.

Wanji Aluminium Smelter Starts Construction in Xinjiang With Green Power Focus

Wanji Aluminium

Wanji aluminium smelter construction has started in China’s Xinjiang region, marking another step in the country’s shift toward larger, more energy-efficient primary aluminium capacity. The 580,000 t/yr project will require total investment of 4.6bn yuan, or about $667 million.

The Wanji aluminium smelter will use Xinjiang’s clean energy resources, including integrated wind and solar power. This gives the project a lower-carbon positioning at a time when electricity source, power cost, and emissions intensity are becoming central to aluminium competitiveness.

Wanji aluminium smelter development also follows China’s capacity replacement policy. The company currently operates a 580,000 t/yr smelter in Luoyang, Henan province, which is scheduled to be demolished by December 2027 after the Xinjiang capacity is completed.

Xinjiang Project Targets High-Efficiency Aluminium Production

The Xinjiang smelter will use 600kA large-scale electrolytic cells, which Wanji described as the world’s most efficient technology. The project will also adopt advanced process systems to reduce energy use and improve operating performance.

Power consumption is expected to be as low as 12,430 kWh/t of aluminium. That level would place the facility among the world’s most energy-efficient aluminium smelting operations.

This matters because aluminium smelting is one of the most electricity-intensive industrial processes. Producers with access to low-cost renewable power and efficient electrolytic cells can gain a structural advantage over older smelters exposed to coal power, higher tariffs, or carbon costs.

Capacity Replacement Supports China’s Aluminium Upgrade Strategy

The project is moving forward in line with Wanji’s capacity replacement plan released in August 2025. China has encouraged aluminium producers to upgrade electrolytic baths and shift more production toward greener energy sources.

The replacement of Wanji’s Luoyang smelter with the Xinjiang facility shows how China is reshaping its aluminium industry. The strategy is not only about adding volume, but replacing older capacity with larger, cleaner, and more power-efficient assets.

Wanji also plans to build the Xinjiang site into a fuller industrial chain, covering alumina through processed aluminium products. This could strengthen value integration and support downstream aluminium fabrication in the region.

The Metalnomist Commentary

Wanji’s Xinjiang project shows how China is combining capacity replacement, renewable power, and high-efficiency smelting technology to strengthen aluminium competitiveness. The key global implication is clear: low-carbon aluminium will increasingly depend on power strategy as much as smelter scale.

Cop 31 Electrification Target Could Reshape Global Power and Metals Demand

Cop 31

Cop 31 electrification target proposed by Turkey would lift electricity’s share of global final energy consumption to 35% by 2035, from around 20% today. The IEA is urging countries to support the goal at the November climate summit in Antalya.

Cop 31 electrification target would place power systems at the centre of the next phase of global decarbonisation. Reaching the target would require substantial investment in generation, grids, storage and end-use electrification across transport, buildings and industry.

Cop 31 electrification target also carries major implications for metals demand. More electricity infrastructure would support long-term consumption of copper, aluminium, electrical steel, battery materials and other inputs used in transmission, storage and renewable generation.

The political challenge is financing. Developing countries warned that higher borrowing costs, limited technology access and weak capital availability could prevent them from participating in the transition at the same pace as wealthier economies.

Grid Investment and Finance Will Determine Delivery

Turkey proposed the 35% electrification goal during climate talks in Bonn. The IEA said the target is achievable and could become a major legacy of Cop 31 if governments reach agreement.

However, expanding electricity use requires far more than adding renewable generation. Countries need transmission lines, distribution networks, transformers, substations, storage systems and digital grid infrastructure.

That creates a significant industrial demand signal. Copper will be central to cables, transformers and electrical equipment, while aluminium will remain critical for transmission conductors and lightweight electrical applications.

Battery storage will also become more important as renewable penetration rises. This supports demand for lithium, graphite, copper and other battery materials, while alternative storage technologies could create additional demand for vanadium, zinc and other metals.

Developing economies face the biggest financing challenge. High borrowing costs can make power projects significantly more expensive even when renewable resources are strong.

Turkey and Australia therefore want finance to sit alongside electrification in the Cop 31 agenda. Ministers from Ethiopia, Colombia and other developing countries also stressed that implementation will depend on better access to capital and technology.

Without that support, electrification could widen industrial inequality. Countries with cheaper financing would build grids and clean power faster, while higher-risk markets could remain dependent on older infrastructure and more expensive energy.

Clean Power Source Will Decide Climate Impact

Electrification alone does not guarantee lower emissions. The climate benefit depends on how the additional electricity is generated.

Civil society groups and governments have warned that rising electricity consumption can still be supplied by coal, gas or other fossil fuels. That means the electrification target must be linked with clean generation expansion and fossil fuel transition policies.

The Powering Past Coal Alliance has called for governments to integrate electrification, clean power build-out and coal transition scenarios. It warned that rapid power demand growth could otherwise lock countries into new coal capacity.

Colombia also argued that faster renewable deployment is not enough without addressing the phase-out of fossil fuels. This debate will remain central to negotiations around the broader transition away from fossil energy.

For industrial supply chains, the distinction matters. A clean electrification pathway creates sustained demand for renewable generation, grids, batteries and low-carbon materials. A fossil-heavy pathway may still increase metals demand, but with a much weaker emissions benefit.

The 35% target therefore represents more than an energy consumption metric. It would influence capital allocation, power infrastructure planning and material demand across multiple sectors for the next decade.

The Metalnomist Commentary

A global electrification target would be a major structural driver for copper, aluminium, electrical steel and storage materials. But without affordable finance and clean generation, electrification could expand electricity demand faster than it reduces emissions.

NextEra Battery Storage Contracts Rise as US Power Demand Accelerates

NextEra Energy

NextEra battery storage contracts increased in the first quarter as the US utility group added 1.3GW of battery storage-based agreements. The additions formed part of 4GW of renewable and storage originations, alongside 2.2GW of solar and 0.5GW of wind.

NextEra battery storage contracts are rising because US electricity demand is growing faster and customers need capacity that can be deployed quickly. The company said demand for power is not slowing and that speed to power has become essential.

NextEra battery storage contracts also show how storage is becoming a core grid resource, not only a supplement to solar and wind. Battery systems can support peak demand, improve grid reliability and provide flexible capacity as data centres, electrification and industrial load growth increase pressure on power networks.

The company added more battery storage than in the first quarter of 2025, when it originated 0.9GW of storage within 3.2GW of renewable energy and storage capacity.

Storage Pipeline Supports Fast Grid Capacity Growth

NextEra has identified four main growth routes for battery storage. These include standalone projects, co-located storage at existing renewable sites, storage as a grid solution and expansion of existing projects from four-hour to eight-hour duration.

This is important because storage demand is becoming more diverse. Standalone batteries can provide rapid capacity support, while co-located systems can improve the value of solar and wind generation.

Longer-duration battery expansion is also strategically relevant. Moving from four-hour to eight-hour systems can help utilities manage evening demand peaks, renewable intermittency and grid congestion.

NextEra’s standalone and co-located storage pipeline exceeds 110GW, excluding expansion opportunities. That scale gives the company one of the strongest platforms in the US storage market.

The growth reflects a broader shift in power infrastructure. Utilities and large customers increasingly need fast capacity additions because new gas plants, transmission lines and conventional generation projects often face long development timelines.

Battery storage is not a full replacement for all forms of generation. But it is becoming one of the fastest tools available to respond to near-term power demand growth.

Secured Supply Through 2029 Reduces Execution Risk

NextEra said it has secured domestic supply for solar panels and battery storage through 2029 at competitive prices. This reduces exposure to trade disruption, tariff changes and equipment shortages.

Supply security matters because battery storage projects depend on reliable access to cells, modules, inverters, power conversion systems, transformers and grid interconnection equipment.

South Korean battery manufacturer Samsung SDI signed a deal in March 2025 to supply 6.3GWh of battery energy storage systems to NextEra. That agreement supports the company’s ability to execute projects while demand rises.

For battery materials, the growth of utility-scale storage strengthens demand for lithium, graphite, iron phosphate cathode materials, copper, aluminium and power electronics. LFP batteries are especially important in stationary storage because of cost, safety and cycle-life advantages.

NextEra’s first-quarter profit rose to $2.18bn on sales of $6.7bn, up from $833mn in profit and $6.25bn in sales a year earlier. Stronger financial performance gives the company more room to support its renewables and storage buildout.

The industrial significance is clear. Battery storage is becoming a strategic capacity product for the US power system, especially as electricity demand from data centres, manufacturing and electrification continues to rise.

The Metalnomist Commentary

NextEra’s storage growth shows that batteries are becoming part of the core power infrastructure toolkit. The next constraint will not be customer demand, but whether supply chains, interconnection queues and grid equipment can keep pace.

Mercedes bets on green aluminium from Norway's Hydro for next-gen CLA

Mercedes aluminium body

Mercedes is turning to green aluminium from Norway's Hydro to cut embedded emissions in its new CLA model. The green aluminium from Norway's Hydro is certified at just 3kg of CO₂ per kilogram of metal across mining, refining, smelting and casting. This compares with a global average of 16.7kg, giving Mercedes a meaningful reduction in material-related emissions. The alloy also contains 25pc post-consumer scrap, which further lowers its lifecycle footprint and supports circular-economy targets.

However, the company’s claim that CLA production is “net carbon-neutral” still depends on offsets. Mercedes powers the plant with 100pc renewable electricity, mainly externally sourced hydropower, which materially cuts scope 2 emissions. But scope 1 emissions from on-site processes and logistics, as well as upstream emissions from suppliers, remain. Therefore, the move to green aluminium from Norway's Hydro is a genuine step forward, even if the overall net-zero claim rests partly on controversial offset mechanisms that investors often scrutinise.

Green aluminium supports low-carbon steel and battery initiatives

The CLA’s use of green aluminium from Norway's Hydro forms part of a broader materials decarbonisation strategy. Mercedes says its latest battery cell design cuts emissions by about 30pc per cell through renewable energy in anode and cathode production. The company also relies on “net carbon-neutral” cell manufacturing at suppliers, since it does not produce cells in-house. As a result, the true impact depends on supplier practices and verification of their renewable power usage.

Meanwhile, Mercedes is layering in low-carbon steel to tackle emissions in chassis and body-in-white applications. The CLA incorporates steel from US producer Nucor’s Econiq-RE range, made using 100pc renewable energy. Mercedes also has a deal with Steel Dynamics for more than 50,000 t/yr of CO₂-reduced steel for its Tuscaloosa plant. Together with green aluminium from Norway's Hydro, these supply contracts show how OEMs are weaponising procurement to reduce embodied carbon ahead of incoming carbon border measures.

Demand for certified green aluminium rises faster than headline prices

Demand for certified low-carbon aluminium is rising as automakers prepare for tighter climate regulations and potential carbon border charges. Carmakers want to cut embedded emissions at the material level, especially for high-intensity metals such as aluminium and steel. This is likely to support growing premiums for Hydro’s Reduxa-style green aluminium grades and similar products from competitors. As a result, upstream smelters with renewable power and high scrap usage gain a strategic pricing advantage.

However, headline aluminium prices on global exchanges remain relatively stable despite bullish long-term forecasts. London Metal Exchange cash aluminium has traded in a narrow range over the past year, even as demand for differentiated “green” material accelerates. This suggests that the value is migrating into contract premiums and long-term offtake deals instead of the base price. Over time, producers unable to demonstrate low-carbon credentials may find themselves pushed into a discounted “grey” segment of the market.

The Metalnomist Commentary

Mercedes’ partnership around green aluminium from Norway's Hydro shows how decarbonisation is increasingly driven by procurement, not just tailpipe regulation. For metals producers, the message is clear: access to cheap renewable power and high-quality scrap streams will shape competitiveness more than pure tonnage growth. As carbon accounting tightens, the premium for verifiable low-carbon tonnes is likely to widen, rewarding early movers across the aluminium value chain.