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Rio Tinto has signed a memorandum of understanding (MoU) with AMG Metals & Materials, an energy transition solutions provider based in India.

The MoU will see both parties map out the feasibility of developing an integrated low-carbon aluminium project powered by renewable energy in India.

The companies will investigate the possibility of producing 2Mtpa of alumina production and the development of a primary aluminium smelter with up to 1 million tonnes per annum (Mtpa) of capacity, both of which would be powered by wind and solar energy.

Rio Tinto Aluminium chief executive Jérôme Pécresse said the project is a key milestone for the major miner.

“This study is an important step in our ambition to grow our global, low-carbon aluminium footprint while exploring new project delivery approaches and opportunities in emerging markets,” he said.

“Partnering with AMG Metals & Materials enables us to assess how we can develop low-cost responsible aluminium production powered by renewable energy. With its rapid economic growth and strategic position, India is a compelling location for this potential project and aligns with our long-term vision for a globally more diverse and resilient aluminium business.”

The study will evaluate a potential first-phase 500,000-tonne-per-annum primary aluminium smelter in India while also assessing smelting technology options.

AMG Metals & Materials, owned by Greenko Group and AM Green, is driven by renewable energy and decarbonisation solutions.

“This MoU could deliver much-needed low-carbon metal at scale to propel decarbonisation initiatives in global supply chains across auto, construction, consumer packaging and many more segments,” group president of AMG M&M and Greenko Mahesh Kolli said.