India's AM Green and Japan's Mitsui explore potential investment, offtake for green aluminium

India's AM Green and Japan's Mitsui & Co have signed a non-binding agreement to explore a potential investment in the former's green aluminium business, the companies said on Thursday.

AM Green, backed by the founders of clean energy firm Greenko Group, is building a 1 million tonne per annum (MTPA) aluminum smelter and a 2 MTPA alumina refinery, both of which will be powered by solar, wind and hydropower to produce green aluminum.

The partnership will explore an equity investment in AM Green's clean metals value chain by Mitsui, as well as an offtake agreement for low-carbon aluminium. The companies did not provide details on the investment.

Aluminium is one of the most polluting non-ferrous metals to make as its production is mostly powered by coal. AM Green says the upcoming integrated green aluminium facility, with the smelter set to be located in India's Andhra Pradesh state, would be the first of its kind globally.