Calls for reciprocal action amid rising aluminium trade deficit; unveils new graphite tech to cut China import dependence
Vedanta Aluminium CEO Rajiv Kumar has called on the Indian government to impose reciprocal tariffs on US aluminium products, including scrap, if Washington does not withdraw its steep 50% duty on Indian aluminium under Section 232. Speaking to Moneycontrol, Kumar said the punitive US tariff, which came into effect on June 4, has severely eroded Indian competitiveness in a $27-billion US aluminium import market.
India’s aluminium trade deficit with the US surged from 90 kilo tonnes in FY20 to 210 KT in FY25, prompting Kumar to demand urgent corrective measures. He asserted that India must seek tariff parity in ongoing trade talks or take reciprocal action to safeguard its domestic industry.
Vedanta Develops Graphite Recovery Process to Cut China Dependency
Kumar also highlighted a breakthrough technology developed at Vedanta’s Jharsuguda smelter, which recovers 40–45% battery-grade graphite from hazardous spent pot lining (SPL) waste. With India importing over 70% of its graphite, largely from China, this innovation offers significant strategic and supply-chain benefits for EVs and energy storage.
India imported $41 million worth of natural graphite in 2024, making domestic alternatives essential. Vedanta is currently entering the certification phase for the recovered graphite and is in talks with battery and EV manufacturers to integrate it into commercial production.
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Industry Seeks Dedicated Graphite Policy, Inclusion in PLI Scheme
Kumar urged the government to treat graphite as a critical mineral and include it in the Production Linked Incentive (PLI) scheme, citing China’s control over 80% of global processing capacity. He proposed a comprehensive policy including exploration incentives, recycling support, and strategic reserves, aimed at enhancing India’s energy security and critical mineral independence.
₹1 Lakh Crore Odisha Investment to Power Aluminium Growth
Vedanta Aluminium has announced a ₹1 lakh crore investment plan in Odisha, including a 3 MTPA green smelter, 6 MTPA alumina refinery, and a 253-acre aluminium park in Jharsuguda. These will anchor India’s largest integrated metals ecosystem, catering to EVs, solar, and MSMEs, helping build downstream capabilities with direct hot metal access.
FY26 Capex at $1.7 Billion; Value-Added Share Targeted at 90%
For FY26, Vedanta Aluminium has set a capex target of $1.7 billion, allocating $700 million for aluminium and power segments. With 2.42 million tonnes produced in FY25, the company now aims to increase its value-added products share from 60% to 90%, strengthening its position in EV, electronics, and construction sectors.
Sustainability Focus: Net Zero by 2050, 105 MW Renewable Power
On decarbonisation, Vedanta is deploying low-carbon aluminium, energy-saving tech reducing power use by 250 kWh/tonne, biomass briquettes, natural gas, and sourcing 105 MW of hybrid renewable energy. The company is targeting net-zero emissions by 2050 or earlier.
Capital Plans Backed by Internal Accruals, Demerger to Unlock Value
Vedanta’s next growth phase will be funded through internal accruals, equity partnerships, debt, and asset monetisation. Of the group’s $20-billion expansion, 50% will be self-financed, while the proposed aluminium business demerger is expected to facilitate targeted fundraising and improve balance sheet health.
