India's base metals production record strong growth in H1FY'25

• Aluminum, zinc, lead, copper production rises, signaling industry resilience
  
  
• Increased focus on automotive, defense, and EV demand for aluminum and copper
  
  
• Capacity expansion and policy support emerge as keys to sustaining growth
  
  

India's base metal production displayed robust growth in H1FY'25 (April-September 2024), reflecting stability in supply and increased demand across key sectors like automotive, defence, and infrastructure. This sectoral expansion highlights a strengthening foundation for the nation's industrial metals, which support the entire supply chain from raw materials to finished goods in critical applications.

Aluminium

In the first half of FY'25, aluminium production rose by 1% to 2.09 million tonnes (mnt), compared to 2.06 mnt in the same period last year. India's primary aluminium smelting capacity is around 4.1 mnt, and steady production is supported by domestic demand.

Key players such as Vedanta, Hindalco, and Balco remain dominant. Vedanta led the growth with a 4% increase in production, reaching 9.11 mnt in H1FY'25. Hindalco produced 6.59 million tonnes, and Balco maintained a stable output of 2.93 mnt. Nalco saw a slight decline of 1%, producing 2.27 mnt.

The Aluminium Association of India has called for increased government support to bolster growth, especially with rising demand from sectors such as defense, aerospace, and electric vehicles (EVs).

Copper

India's copper cathode production climbed 5% to 2.5 mnt in H1FY'25, Hindalco contributed significantly with 1.89 mnt, while Vedanta's Sesa Sterlite produced 0.61 mnt. Despite strong cathode output, copper ore and concentrate production declined by 6%, totaling 1.73 mnt in H1FY'25, attributed to a production dip at Hindustan Copper Limited, the sole primary producer. The global demand for copper remains promising due to its application in renewable energy and infrastructure, which is anticipated to influence India's copper sector positively.

Zinc

In H1FY'25, zinc production experienced a notable increase, rising by 4% to reach 4.09 mnt against 3.94 mnt during the same period in April to September 2024.

India's primary zinc smelting capacity stands at about 912,000 t. Hindustan Zinc Limited (HZL), India's sole refined zinc producer, contributed around 4.09 mnt in H1FY'25.

Lead

India's lead production increased in H1FY'25 to 1.15 mnt, reflecting a significant increase of 7% from 1.07 mnt in the CPLY.

India's installed capacity for lead primary production is 204,000 t/year. HZL, the sole producer of refined lead, had an output of 1.15 mnt in H1FY'25.

Outlook

India's base metals sector shows a stable supply chain, with rising production capacities and steady output levels contributing to robust demand in downstream industries. The automotive sector, especially, remains a key consumer as it shifts toward lightweight materials and electric vehicles (EVs).

With anticipated policy support for the metals sector, India is positioned to sustain growth, though ongoing capacity expansion and global demand will be decisive for future gains.