Vedanta Invests Rs 210 bn in Metals Capacity Expansion Projects

  • Industry News
  • Sep 17,26
Vedanta has invested over Rs 210 bn through FY26 across metals capacity expansion projects to strengthen India’s metals ecosystem and support electric mobility demand.
Vedanta Invests Rs 210 bn in Metals Capacity Expansion Projects

Vedanta Group, a global producer of metals, oil & gas, critical minerals, power and technology, has announced that it has invested over Rs 210 bn through FY26 in ongoing projects for metal production and capacity expansions across aluminium, zinc, value-added alloys, copper, steel, nickel and ferrochrome.

The investments aim to strengthen India’s metals ecosystem and support materials required for the country’s growing electric mobility sector and the wider automotive industry.

India is the world’s third-largest automobile market in terms of both production and sales. As electric vehicles (EVs) gain adoption, demand for materials used across the electric mobility ecosystem, including battery cells, energy storage systems, electric motors, power electronics, semiconductor chips, charging infrastructure and lightweight vehicle components, is expected to increase significantly.

At a time when India imports over 80% of its critical mineral requirements, the country’s demand for critical minerals and rare earth elements could grow four to tenfold by 2047.

Addressing this growing dependence, Vedanta has secured 10 critical mineral blocks across commodities including copper, nickel-chromium-PGE (Platinum Group Elements), tungsten, graphite, vanadium, rare earth elements and potash. With exploration already underway across five blocks, Vedanta is working towards building domestic access to materials that will become increasingly important for vehicular safety, fuel efficiency, sustainability and ergonomics.

Vedanta Group’s diversified metals portfolio provides a foundation for its participation in India’s growing electric mobility ecosystem.

Aluminium’s lightweight properties are particularly relevant for electric vehicles, where reducing vehicle weight can improve energy efficiency and extend driving range. In FY2025–26, Vedanta Aluminium Metal Limited (NSE: VAML) produced a record 2.45 mn tonnes of aluminium, reinforcing its position as India’s largest primary aluminium producer. Its aluminium portfolio supports automotive applications through products including primary foundry alloys, rolled products, billets and slabs.

The company has also developed low-carbon ‘green’ aluminium offerings, Restora and Restora Ultra, providing automotive manufacturers with options to reduce the carbon footprint associated with material sourcing.

Investments in Vedanta Aluminium’s plants at Chhattisgarh (BALCO) and Jharsuguda in Odisha are expanding aluminium smelting and value-added capacity for automotive, electrical and advanced applications. To support future mobility requirements, Vedanta Aluminium Metal Limited recently launched Copper-Doped Alloy, developed for high-performance automotive applications, and Vedanta Foundry Alloy (VFA), a material developed for enhanced durability in collaboration with IIT Delhi, under its Primary Foundry Alloy (PFA) range.

Nickel remains one of the Group’s key links to the EV battery value chain. As India’s sole primary nickel producer, Vedanta plays a role in strengthening domestic availability of this critical mineral, which is important to the battery metals ecosystem.

Vedanta Limited’s (NSE: VEDL) zinc and silver businesses through subsidiary Hindustan Zinc Limited (NSE: HZL), the world’s largest integrated zinc producer and India’s sole silver producer, support the country’s growing electrification ecosystem. In FY2025–26, Hindustan Zinc produced 0.851 mn tonnes of refined zinc and 627 tonnes of saleable silver. Its portfolio includes specialised automotive zinc alloys and EcoZen, its low-carbon ‘green’ zinc offering, with Tata Steel and Silox India among its early customers.

EVs require 3–4 times more copper than conventional vehicles, making copper a critical material for vehicle electrification. Vedanta Limited recorded its highest-ever cathode production of 0.17 mn tonnes in FY2025–26, supporting applications across motors, cables, conductors and electrical systems. Its investment in the Copper Rod Plant in the Kingdom of Saudi Arabia (KSA) further strengthens downstream copper production capacity.

Commenting on the announcement, Arun Misra, CEO, Vedanta Group, said: “As EV adoption accelerates, the strength of India’s journey will increasingly depend on its ability to secure reliable access to the metals and critical minerals that underpin vehicles, batteries and charging infrastructure. Building these capabilities domestically will be essential to creating supply chains capable of supporting India’s long-term mobility ambitions. At Vedanta, we are investing across this opportunity through our presence in key metals, while building capabilities in critical minerals. We are expanding our role across the resource base that will support the next generation of mobility and battery value chains.”

Vedanta is also advancing next-generation battery technologies as part of its efforts to support India’s evolving EV and energy storage ecosystem. Through partnerships with IIT Madras and JNCASR, the Group is developing sustainable zinc-based battery solutions.

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