Adani Group's Copper Factory in Gujarat to Bolster India's Energy Transition

Mundra Plant's Operations to Reduce Copper Imports and Accelerate Green Energy Infrastructure

Gautam Adani-led group's copper-producing factory in Mundra, Gujarat, is set to begin operations in March next year, a move that will reduce India's dependence on copper imports and support the transition to clean energy, according to sources.

Copper plays a crucial role in electrification, as it is used in wires, electric vehicles (EVs), charging infrastructure, solar panels, wind turbines, and batteries. To meet the growing demand for these technologies and renewable energy, India needs more copper production.

Kutch Copper Ltd (KCL), a subsidiary of Adani Enterprises Ltd, is building a greenfield copper refinery project capable of producing 1 million tonnes of refined copper annually in two phases. The first phase, with a capacity of 0.5 million tonnes, is expected to be operational by the end of the current fiscal year.

The project has secured financial support from a consortium of banks, and all necessary approvals are in place for timely execution. Copper demand is rising due to the growth of renewable energy, telecom, and electric vehicle industries in India, but the domestic production has not been able to keep up, leading to increased reliance on imports.

In the last fiscal year, India imported a record 1,81,000 tonnes of copper while exports declined to a record low of 30,000 tonnes. The country's copper consumption is estimated to reach 1.7 million tonnes by 2027, mainly driven by the green energy sector.

Adani group's rapidly growing renewable portfolio will also contribute to increased copper consumption. The Mundra plant's strategic location on the west coast will support green energy infrastructure development and promote 'Make in India' initiatives.

The project aims to make Mundra Special Economic Zone a hub for downstream copper products. Additionally, the plant is designed to be sustainable with zero liquid discharge and exploring the use of green power and byproducts for other industries.

The plant will also produce byproducts like silver, sulphuric acid, and phosphoric acid, which will help reduce India's dependence on imports for these materials.

Globally, copper production is concentrated in a few countries, with Chile and Peru accounting for a significant portion. Demand for copper during the energy transition is expected to rise notably in the US, China, Europe, and India.

By 2035, the US is projected to import up to two-thirds of its copper requirements. Overall, this new copper production facility is a significant step towards India's energy transition and reducing reliance on imported materials.

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