- Hindustan Copper awarded Lohum Cleantech a 20-year agreement to revive the Gujarat Copper Project.
- India’s copper demand exceeded 1,878 kilotonnes in FY2025, driven by EVs and digital infrastructure growth.
India is set to strengthen its domestic copper supply chain after Hindustan Copper Limited awarded Lohum Cleantech the rights to restart, modernize, and operate the Gujarat Copper Project located at Jhagadia. The agreement was signed on June 3 and follows a revenue-sharing model spanning 20 years, with a provision for a further five-year extension. The initiative is expected to support the country's growing need for refined copper across several industrial segments, including power transmission, electronics manufacturing, construction activities, and electric mobility applications.
Gujarat Copper Project to Produce High-Purity Copper Cathodes
The upgraded facility is designed with an annual production capacity of 50,000 tonnes and will manufacture Grade-A copper cathodes with a purity level of 99.9997%. Such high-purity copper is essential for applications requiring superior electrical conductivity and performance reliability. The project revival is expected to enhance domestic availability of refined copper products while reducing dependence on external sources, helping industries secure critical raw materials for ongoing expansion and technology development programs.
India's Rising Copper Demand Creates Strong Market Opportunity
Domestic copper demand in India surpassed 1,878 kilotonnes during FY2025, which ended in March, highlighting the increasing importance of the metal in the country's industrial ecosystem. Demand is expanding at an annual rate exceeding 9%, supported by rapid infrastructure development, electrification initiatives, and the adoption of advanced technologies. Copper remains a critical material for power networks, electronics production, renewable energy systems, and modern transportation solutions.
Key Demand Drivers for Copper in India
- Growing adoption of electric vehicles across multiple segments
- Expansion of power transmission and distribution infrastructure
- Increasing electronics manufacturing activities
- Construction sector growth and urban development projects
- Rising deployment of AI-driven data centre infrastructure
Copper Consumption Growth Linked to EVs and Data Centres
The accelerating transition toward electric mobility is creating substantial demand for copper. Each electric vehicle typically requires between 60 and 80 kilograms of copper for batteries, motors, wiring systems, and charging-related components. In parallel, the rapid deployment of AI-focused data centres is emerging as another significant demand source, with each facility consuming approximately 28 to 30 tonnes of copper. These trends are expected to sustain long-term growth opportunities for domestic copper producers and processors.
Gujarat Copper Project Key Details
| Parameter | Details |
|---|---|
| Project | Gujarat Copper Project, Jhagadia |
| Operating Agreement | 20 Years + 5-Year Extension Option |
| Annual Capacity | 50,000 Tonnes |
| Product | Grade-A Copper Cathodes |
| Purity Level | 99.9997% |
| Primary End Markets | Power, Electronics, Construction, EVs |
The partnership between Hindustan Copper Limited and Lohum Cleantech reflects the increasing strategic importance of copper as India advances toward greater electrification and digital infrastructure expansion. By restoring production capacity at the Gujarat Copper Project, the companies aim to support future industrial demand while strengthening the country's domestic supply ecosystem for a critical industrial metal.
Frequently Asked Questions
What is the Gujarat Copper Project?
The Gujarat Copper Project is a copper production facility located in Jhagadia that is being restarted and upgraded under a partnership between Hindustan Copper Limited and Lohum Cleantech. The plant has an annual production capacity of 50,000 tonnes and will manufacture 99.9997% pure Grade-A copper cathodes. These cathodes are intended to support demand from key sectors such as power transmission, electronics manufacturing, construction, and electric vehicles, helping strengthen domestic copper availability in India.
Why is copper demand increasing in India?
Copper demand in India is rising due to rapid electrification, infrastructure development, EV adoption, and expansion of advanced digital infrastructure. Domestic demand exceeded 1,878 kilotonnes in FY2025 and continues to grow at more than 9% annually. Electric vehicles require significant quantities of copper for motors, batteries, and wiring systems, while AI-focused data centres also consume large volumes of the metal. These factors are creating sustained growth opportunities across the copper value chain.
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