Vedanta Aluminium Seeks Tariff Relief, Bets Big on Graphite & Green Growth

Vedanta Aluminium CEO Rajiv Kumar is calling for the US to remove the steep 50% import duty on Indian aluminium. This tariff, imposed under Section 232, has made Indian exports less competitive. India’s aluminium trade deficit with the US has jumped from 90 KT in FY20 to 210 KT in FY25. Kumar warned that if tariffs aren’t removed, India should impose reciprocal duties on US aluminium products to protect its industry. On the innovation front, Vedanta has developed an in-house process to recover 40–45% battery-grade graphite from spent pot lining (SPL) waste at its Jharsuguda plant. With India importing over 70% of its graphite—mostly from China—this tech could significantly cut reliance on imports. India spent $41 million on graphite imports in 2024 alone. Kumar said the company is in talks with battery and EV manufacturers to certify and scale this recovered graphite for commercial use. The firm is also pushing for policy support, including inclusion of graphite in India’s PLI scheme, as China controls 80% of global graphite processing. Vedanta Aluminium plans to invest Rs 1 lakh crore in Odisha to set up a 3 MTPA green aluminium smelter, 6 MTPA alumina refinery, and India’s largest metals park (253 acres). This will support EVs, solar, electronics, and help MSMEs access hot metal directly. For FY26, the company has allocated $1.7 billion in capex, with $700 million for aluminium and power. It aims to boost value-added aluminium products from 60% to 90%. Sustainability is also key. The company is using renewable energy, biomass briquettes, and tech to cut energy use by 200–250 kWh per tonne. It targets net-zero carbon emissions by 2050. To fund its $20 billion expansion plan, Vedanta will use internal cash flows, asset monetisation, and equity partnerships. It aims to cut debt by $3.5 billion by 2027 and reach zero net debt in 3–4 years.