According to ICRA, domestic refined copper demand growth is expected to remain healthy at 11 per cent in FY25, outpacing the rate of global growth in copper demand, given the Centre’s thrust on infrastructure development and a gradual transition to renewable energy
The demand for copper, a key component in electric vehicles, will go up substantially as the world shifts to cleaner energy sources to mitigate climate change, according to Hindustan Copper Chairman and Managing Director Ghanshyam Sharma.
By transitioning from fossil fuels to renewable energy sources like solar, wind, hydro, and geothermal, greenhouse gas emissions can be reduced significantly.
“As the world transitions to cleaner energy sources, the demand for copper will increase significantly as a vital component in electric vehicles and renewable energy technologies such as solar panels, wind turbines, etc,” the CMD said in a recent message on the company’s website.
He further said the company has been given the charge of utilising the nation’s copper resources in an efficient and sustainable way.
India, he said, is committed to achieving net zero emissions by 2070.
According to ICRA, domestic refined copper demand growth is expected to remain healthy at 11 percent in FY25, outpacing the rate of global growth in copper demand, given the Centre’s thrust on infrastructure development and a gradual transition to renewable energy.
In the domestic market, around 40 percent of the copper is consumed by the infrastructure and construction sectors, and 11-13 percent each in the automobile and consumer durables sectors.
The Centre’s emphasis on affordable housing schemes, smart city projects, the defence sector and the expected higher penetration of EVs and its associated infrastructure bode well for the domestic copper demand outlook.
Hindustan Copper Limited (HCL) was the sole producer of refined copper until 1995. Currently, three major players dominate the Indian copper industry namely HCL in the public sector, Hindalco Industries Ltd., and Vedanta in the private sector.
