Vedanta invests ₹12,500 crore to expand metals output for EV industry

Vedanta has invested Rs 12,500 crore to expand aluminium, zinc, copper, steel, nickel and ferrochrome capacity to support the growing demand from India's EV industry

Mining major Vedanta on Monday said it has invested over Rs 12,500 crore ($1.5 billion) to ramp up production of aluminium, zinc, value-added alloys, copper, steel, nickel and ferrochrome to support the growing needs of India’s electric vehicle (EV) industry.

 

According to a company statement, these investments include capacity expansion across aluminium smelters, boosting aluminium value-added products, setting up a zinc alloy plant, a roaster for zinc production and ferrochrome capacity augmentation. The company’s aluminium product portfolio includes primary foundry alloys for wheels, engine blocks and cylinder-head applications, billets for battery casings, heating, ventilation and air conditioning (HVAC) systems and EV frames.

 

Vedanta added that its aluminium is also being tested for breakthroughs in crash-resistant alloys and energy storage solutions. Aluminium’s high strength-to-weight ratio, design flexibility, thermal and electrical conductivity and 100 per cent recyclability make it a preferred metal for automakers worldwide.

 

“At TVS Motors, we prioritise excellence in our automotive offerings by using top-class aluminium, which plays a vital role in delivering products that are not only high in performance but also sustainable. The integrity of raw materials forms the foundation of our commitment to efficiency and innovation,” said S. Senthil Kumar, vice-president, central purchase, TVS Motors, a customer of Vedanta Aluminium.

 

Abhinandan Singh, senior area procurement manager – metals, Tata Steel, a customer of Hindustan Zinc, part of Vedanta Group, said: “Zinc is rapidly becoming an indispensable material in the automotive sector, particularly with the acceleration of electric vehicle production. Its applications, from galvanised steel providing superior protection to versatile zinc die-casting alloys, are pivotal for various components. Our enduring collaborations with industry leaders like Vedanta and Hindustan Zinc are a testament to top-notch quality and innovation in this critical area.”

 

Vedanta’s zinc portfolio includes special high-grade zinc, continuous galvanising grade zinc and Asia’s first low-carbon ‘green’ zinc branded EcoZen, the company said. It is also India’s sole primary producer of silver, extensively used in automotive electronics, including switches and relays, while enhancing conductivity and efficiency.

 

In nickel, nearly 80 per cent of Vedanta’s metal production was sold in the domestic market in FY25. The company also produces nickel sulphate, a key ingredient in nickel-rich cathodes for batteries that enable clean mobility transition. Vedanta holds 40 per cent of the domestic nickel sulphate market and also exports to global EV battery makers, it said.

 

In addition, Vedanta plans to foray into rare earth elements, graphite, vanadium, manganese and tungsten, which will further strengthen its contribution to EV manufacturing.