As India's AI spending rises, investors find a play in copper
Indian investors are betting on copper-related companies as AI infrastructure spending rises globally, with shares of Hindustan Copper and Pondy Oxides surging over the past year. The government’s 2025 Copper Vision Document projects a six-fold increase in demand by 2047, driven by AI, electric vehicles, and renewable energy, while domestic production remains limited to 5% of needs, forcing reliance on imports.
India lacks direct AI or semiconductor stocks, but investors are turning to copper producers, a critical input for data centers, power grids, and electric vehicles. Companies like Hindustan Copper, Pondy Oxides, and Jain Resource Recycling have seen share gains of 120%, 80%, and 36% respectively over the past year, while Gravita India fell 12% due to margin pressures. The surge reflects India’s copper supply constraints—domestic mines meet only 5% of demand, leaving the market reliant on imports. The government’s 2025 Copper Vision Document forecasts a six-fold demand increase by 2047, targeting 5 million tonnes per annum in smelting and refining capacity by 2030, alongside expanded recycling and overseas partnerships. Hindustan Copper plans to boost ore production from 3.7 mtpa to 12.2 mtpa by FY30, while Pondy Oxides doubled its recycling capacity to 12,000 tonnes annually in FY26, with production jumping 7.3 times. Gravita India is commissioning a 29,400-tonne recycling plant and acquired Rashtriya Metal Industries Limited to enter electrical and defense copper segments. Jain Resource Recycling’s copper recycling revenue rose to 55% of total revenue in FY26, up from 49% in FY25. Global copper spot prices on the London Metal Exchange surged 41% over the past year, driven by demand from data centers, power networks, and electrification projects linked to AI growth. Domestic demand is projected to reach 3–3.3 million metric tonnes by 2030 and up to 9.8 million by 2047, per ICICI Direct’s July 2025 report. While AI is a key driver, electrification—including power grid upgrades, electric vehicles, and renewable energy—remains the primary demand catalyst. Experts note that data centers, though growing, require only 30,000–40,000 tonnes of copper annually in India, a small fraction of total projected needs. Bloomberg Intelligence estimates global data center copper use could hit 1.1 million tonnes by 2030, underscoring the broader industrial shift toward copper-intensive infrastructure.
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