$6 billion bet: Rio Tinto, AM Green plan to build world’s largest green aluminium plant in India

$6 billion bet: Rio Tinto, AM Green plan to build world’s largest green aluminium plant in India

Slogan: “Forging a Greener Future—India Leads the Aluminium Revolution!”

In a landmark move poised to reshape the global aluminium industry, mining giant Rio Tinto has partnered with India’s AM Green to explore the development of the world’s largest green aluminium plant. This ambitious $6 billion project aims to produce up to 1 million tonnes of primary aluminium and 2 million tonnes of alumina annually, powered entirely by renewable energy sources like wind and solar, supplemented by pumped hydro storage. :contentReference[oaicite:0]{index=0}

🌿 The Vision: A Sustainable Aluminium Ecosystem

The collaboration between Rio Tinto and AM Green signifies a major step towards sustainable industrial practices. By leveraging India’s abundant renewable energy potential, the project aims to establish a fully integrated green aluminium production facility. This initiative not only aligns with global decarbonization goals but also positions India as a leader in eco-friendly industrial manufacturing.

Key Project Highlights:

  • Production Capacity: 1 million tonnes of primary aluminium and 2 million tonnes of alumina per annum.
  • Energy Source: 100% renewable energy, including wind, solar, and pumped hydro storage.
  • Location: Strategically selected site in India, leveraging local resources and infrastructure.
  • Partnership: Joint venture between Rio Tinto and AM Green, backed by Greenko Group’s founders.

🏗️ Project Phases and Timeline

The project is planned to unfold in multiple phases, starting with a feasibility study for a 500,000-tonne per annum aluminium smelter. Upon successful evaluation, the full-scale plant will be developed, incorporating advanced technologies and sustainable practices. :contentReference[oaicite:1]{index=1}

Projected Timeline:

PhaseTimelineDetails
Feasibility Study2025Assessing technical and economic viability.
Initial Development2026–2028Construction of 500,000-tonne smelter.
Full-Scale Operation2029 onwardsExpansion to 1 million tonnes of aluminium production.

🔋 Renewable Energy Integration

A cornerstone of this project is its reliance on renewable energy. By utilizing wind and solar power, complemented by pumped hydro storage, the plant aims to achieve a zero-carbon footprint in its aluminium production process. This approach not only reduces environmental impact but also ensures energy security and cost-effectiveness.

Energy Mix Breakdown:

Energy SourceContribution (%)
Solar Power50%
Wind Power30%
Pumped Hydro Storage20%

🌍 Global Impact and Market Dynamics

The establishment of this green aluminium plant is expected to have significant implications for global markets. With increasing demand for sustainable materials in industries like automotive, construction, and packaging, the project’s output will cater to a growing segment seeking low-carbon alternatives. Moreover, it sets a precedent for other nations and companies to invest in eco-friendly industrial solutions.

Projected Global Aluminium Demand (2025–2030):


💬 Expert Insights

“This MOU could deliver much-needed low-carbon metal at scale to propel decarbonization initiatives in global supply chains across auto, construction, consumer packaging, and many more segments.”

— Mahesh Kolli, Group President of AMG M&M and Greenko

“We are making excellent progress with our major projects to deliver profitable organic growth.”

— Jakob Stausholm, Chief Executive, Rio Tinto

❓ Frequently Asked Questions

Q1: What makes this aluminium plant ‘green’?

A1: The plant’s operations will be powered entirely by renewable energy sources, resulting in significantly lower carbon emissions compared to traditional
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