Vedanta Limited has committed over ₹21,000 crore through FY26 to expand production of critical metals like copper and nickel for India's EV supply chain. The move aligns with the company’s goal to reduce group debt by over ₹20,000 crore in FY27 while advancing its major corporate demerger plan.
Vedanta Limited has committed over ₹21,000 crore to expand its production capacity for critical minerals and metals, aiming to become a key supplier for India’s growing electric vehicle (EV) supply chain. This capital spending, covering the company’s operations through the 2026 fiscal year, focuses on scaling the domestic output of essential commodities including aluminium, copper, zinc, nickel, and rare earth elements.
The company’s strategy involves securing and developing 10 critical mineral blocks, with active exploration already underway at five of these sites. By increasing the domestic production of these materials—which are vital for battery technology, lightweight vehicle components, and energy storage—Vedanta intends to help lower India's dependence on imported raw materials.
From a financial perspective, the company is executing this expansion alongside a focused effort on its balance sheet. Vedanta reported a solid fiscal year 2026, with an annual EBITDA of ₹55,976 crore and a net debt-to-EBITDA ratio of 0.95x. As part of its broader capital allocation strategy, the company has announced plans to reduce its overall group debt by more than ₹20,000 crore during the next financial year (FY27).
Investors are tracking these moves within the context of the company’s ongoing corporate restructuring, which involves a planned demerger into five sector-focused listed entities. This structural change is designed to create independent business units, allowing for more targeted growth and operational efficiency.
However, the company faces inherent business risks. The mining and metal sector is highly sensitive to global commodity price volatility, which can directly influence revenue and profit margins. Furthermore, the large-scale integration of its demerged business entities poses operational challenges. Mining projects also carry regulatory risks, including those related to environmental clearances and land acquisition, which can occasionally delay project timelines.
Going forward, the key monitorables for shareholders will be the progress of the critical mineral exploration projects, the actual debt reduction achieved in FY27, and the timeline for the next milestones in the corporate demerger process.