In a significant move for India's industrial decarbonization, AM Green, backed by the founders of Greenko, has entered a strategic partnership with Japan's Mitsui & Co. The companies signed a memorandum of understanding (MoU) on Thursday to collaborate on energy transition initiatives and explore potential investment pathways in low-carbon aluminium.
Strategic Collaboration for a Green Metals Value Chain
Under the newly signed MoU, Mitsui will assess potential investment across the AM Green Metals value chain. This investment is intended to support the equity requirements for building what the companies claim will be the world's first integrated green aluminium production platform. The partnership forms a crucial part of AM Green's ambitious $20 billion capital expenditure strategy, which focuses on converting electrons into metals and molecules.
AM Green is executing this vision through its wholly owned subsidiary, AM Green Aluminium Metals and Materials (AM Green Metals). The company is constructing a massive production facility that includes a 1 million tonnes per annum (mtpa) primary aluminium smelter, coupled with 2 mtpa of alumina refining and mining operations. Both the smelter and the refinery will be powered entirely by renewable wind and solar energy, with stability ensured through pumped hydro storage.
Massive Investments and Global Market Access
This development follows a major commitment from the Andhra Pradesh government last month. AM Green signed agreements for projects worth ₹54,000 crore in the state, with ₹44,000 crore specifically earmarked for the 1 mtpa aluminium plant. The collaboration with Mitsui extends beyond capital. The two firms will also explore offtake arrangements for the low-carbon aluminium produced and evaluate the supply of auxiliary materials needed for the green smelter and refinery.
"AM Green is building globally competitive platforms across molecules and materials to enable industrial decarbonization at scale," said Mahesh Kolli, founder of Greenko Group and AM Green. "We are pleased to partner with Mitsui to explore collaboration pathways that can accelerate low-carbon aluminium and expand market access for a wider set of green products."
Driving Competitiveness in a Carbon-Conscious World
This partnership gains urgency from evolving global trade policies. Developed economies like the European Union are implementing mechanisms like the Carbon Border Adjustment Mechanism (CBAM), which will impose carbon taxes on imports. Producing green aluminium positions Indian manufacturers to remain competitive by avoiding these future levies and meeting stricter compliance norms.
India, as the world's second-largest aluminium producer after China, is seeing a rapid shift in its metals sector. AM Green's venture is part of a larger trend. Earlier this year, global mining giant Rio Tinto partnered with India's AMG Metals & Minerals for a $6 billion renewable-powered aluminium facility. Furthermore, in May, state-run Coal India Ltd agreed to supply 4,500 MW of renewable power to AM Green's green ammonia projects.
AM Green's broader strategy includes establishing production for various green molecules like green hydrogen, green ammonia, and sustainable aviation fuels. The founders aim to build 5 mtpa of green ammonia capacity by 2030, which would account for one-fifth of India's national green hydrogen target and 10% of Europe's import goal. A recent report by JMK Research highlighted the scale of the opportunity, projecting that India's aluminium sector alone will need 18-20 GW of solar and wind capacity by 2030, requiring an estimated $5 billion in investment.
