Anglo-Australian mining major Rio Tinto Ltd and India's AMG Metals & Materials (AMG M&M), an energy transition solutions provider, have signed a Memorandum of Understanding (MoU) to jointly assess the feasibility of developing an integrated low-carbon aluminium project powered by renewable energy in India.
Aluminium is a recyclable, environment-friendly metal having a host of applications across diverse sectors including power, transportation, building, construction, packaging and many more.
Global primary aluminium demand has reached approximately 70 million tonnes per annum (tpa).
India is already the world’s second biggest aluminium producer and third biggest consumer, with demand set to double over the next decade. The current market demand in India is around 5 million tpa.
Integrated low-carbon aluminium production
Together, the parties will consider the potential development of up to 1 million tpa primary aluminium smelter and 2 million tpa of alumina production, both powered by renewable wind and solar energy, and backed by pumped hydro storage.
The development will comprise a study to evaluate a potential 500,000 tpa first-phase primary smelter in a favourable location in India.
This study is an important step in our ambition to grow our global, low-carbon aluminium footprint while exploring new project delivery approaches and opportunities in emerging markets. Partnering with AMG Metals & Materials enables us to assess how we can develop low-cost, responsible aluminium production powered by renewable energy. With its rapid economic growth and strategic position, India is a compelling location for this potential project and aligns with our long-term vision for a globally more diverse and resilient aluminium business, said Jérôme Pécresse, Chief Executive at Rio Tinto Aluminium.
As part of the study, AMG M&M will examine a firm renewable energy solution with Greenko, while Rio Tinto will explore a commercial alumina solution.
The study will also assess smelting technology options to determine the most cost-effective solution for the project.
Over the last few years, we have been able to deliver a multitude of decarbonization solutions comprising electricity, molecules, chemicals and fuels. We are excited to expand that further to the materials space. 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, said Mahesh Kolli, Group President of AMG Metals & Materials and Greenko.
