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This venture marks Rio Tinto’s return to India nearly a decade after its exit. The company was previously active in the country through its Bunder diamond mining operation in Madhya Pradesh, which it exited in 2016.
The deets: Rio Tinto is the world’s second-largest mining company, producing essential materials like iron ore, aluminium, copper, and lithium. On the other hand, AMG Metals & Materials focuses on delivering advanced, sustainable metal and material solutions for industrial sectors.
The planned development could require an investment of $5–7 billion, rolled out in phases.
The proposed undertaking may involve the production of up to 1 million tonnes of primary aluminium and 2 million tonnes of alumina annually. Both will run on renewable energy sources like wind and solar, backed by pumped hydro storage for reliability.
In the initial phase, the companies will examine the possibility of setting up a 500,000-tonne-per-year aluminium smelter at a strategically chosen location in India.
Why it matters: this collaboration could help India ramp up domestic aluminium production, benefiting high-growth sectors like construction and electric vehicles. For global buyers, it offers access to low-carbon aluminium, which is increasingly in demand. The alliance also allows both companies to tap into a fast-growing market while staying aligned with green goals.
Aluminium is lightweight, recyclable, and highly sought-after, with global usage now at around 70 million tonnes. It’s essential for industries such as automotive and construction due to its strength and low weight.
Background: AMG M&M was co-founded by Anil Chalamalasetty and Mahesh Kolli, who also established the Greenko Group, a leader in clean energy solutions.
AMG M&M will team up with Greenko to develop a reliable renewable power framework, while Rio Tinto will focus on building a commercial alumina supply chain.
Zoom out: India’s planned green aluminium facility is expected to operate using 1.8–2.0 GW of solar and wind energy, supported by pumped hydro storage, which translates to 7–8 GW of clean power capacity.
Although India is the second-largest aluminium producer globally, it continues to import large volumes of bauxite, despite having ample reserves.
Bauxite is the core raw material used to produce aluminium. While India has plenty, mining challenges and limited processing capacity force the country to rely on imports.
The plan is to source bauxite from Rio Tinto’s Australian mines to meet India's growing demand. This will also support exports of low-carbon aluminium to markets like the European Union, where clean materials are in high demand.
India ranks as the second-largest producer and third-largest consumer of aluminium, with a market of 5 million tonnes per year. That demand is expected to double over the next decade.
