Will The Trade War Open Copper Doors for India? Vedanta's Chairman Anil Agarwal Has An Answer

Copper is quickly emerging as the ‘metal of the future, ’ fueling everything from electric vehicles (EVs) and renewable energy to AI and defence technology. With demand accelerating globally, India is at the centre of a gigantic opportunity to take the lead in this copper-driven transformation.

Anil Agarwal, Vedanta Chairman, recently tweeted on X, highlighting the potential of the Indian market in copper 
"Copper is the new super metal. used in every advanced technology like EVs, renewables, AI, and defence. Copper mines around the world are being rejuvenated, new smelters are coming up."

“India has huge potential in transition metals. Excellent opportunity for young entrepreneurs and investors. Let's make it a mission,” he added.

Global Trade War on Rare Metals

A new battlefront has been opened in the US-China trade war over rare and strategic minerals. In April 2024, the US imposed increased tariffs on Chinese imports such as electric vehicles, batteries, and rare earths such as graphite and gallium. China, in retaliation, curbed exports of essential minerals employed in semiconductors and renewable energy, raising global supply chain anxiety.

As per the Brookings Institution, these changes in geopolitics are leading nations to diversify supply chains and minimize dependence on China. Here lies India's opportunity with increased global interest in 'China Plus One' sourcing, India's copper industry could draw significant investment and strategic collaborations.

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India's Rising Demand For Copper 

India's copper demand for refined copper surged 13% in FY24, led by infrastructure, electric vehicle adoption, and clean energy. Local supply has been weak because of the shutdown of Sterlite's Tamil Nadu smelter in 2018. That led to imports of copper swelling 103% in FY24.

According to Reuters, to bridge the gap, Adani Enterprises is constructing a $1.2 billion copper smelter in Gujarat's Mundra with 500,000 TPA capacity. JSW Group has planned a comparable-sized project in Odisha by 2028-29, which will be ramped up by 2033-34.

ALSO READ: Adani Group unveils $1.2 billion copper manufacturing plant in Mundra, Gujarat

The Road Ahead for India

India has made copper a critical mineral, emphasising its importance in national security and economic development. India has the geological potential with reserves of more than 163.9 million tonnes, but needs investment and policy reforms to tap the full potential.

India's demand for copper is likely to double by 2030, in line with its clean energy ambitions. With the US and Europe already keen to move away from Chinese dependence on metals, India can emerge as a reliable alternative centre for copper production and refining.

With intelligent policy implementation, India can become a leading world player in the copper sector, driving its own industrial revolution and gaining from an evolving world order in key minerals.