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When President Trump opened his first trade war on China in 2018, a company called Zetwerk was just beginning to connect global customers with Indian suppliers of things like sheet metal and precision parts.
Today, it has a network of more than 10,000 suppliers and seven of its own electronics factories. Its latest facility, making parts for washing machines and other appliances, opened in March.

BENGALURU: Contract manufacturing marketplace Zetwerk Manufacturing Businesses has entered into a partnership with SMILE Electronics, an electronics manufacturing services (EMS) company, to launch three factories for IT hardware production in India.

Introduction:

Harish: Welcome, Venkatesh! Thanks for joining us today to talk about the future of metal trading. As we look toward 2025, a lot is changing in the industry. To kick things off, what in your opinion drives the biggest changes in the metal trading landscape?

Venkatesh: Thank you, Harish! It’s a fascinating time for the metal trading world. One of the key drivers is the global energy transition, which is increasing demand for specific metals like copper, lithium, and cobalt, essential for electric vehicles (EVs) and renewable energy. Another factor is the economic influence of China, the world’s largest consumer of metals. Any shifts in their growth strategy or infrastructure spending will impact global demand. And, of course, ongoing macroeconomic conditions, including inflation and tight monetary policies, are creating market volatility.

Section 1: Key Market Dynamics Shaping Metal Trading

Harish: That’s an excellent overview. Can you go a bit deeper into these trends? What specific market dynamics are shaping metal trading as we head into 2025?

Venkatesh: Certainly. First, the global energy transition will be a major driver. Countries worldwide are pushing toward net-zero emissions, and metals like copper, lithium, and cobalt are critical for technologies like electric vehicles and renewable energy infrastructure. This is creating a surge in demand.

Additionally, inflation and high interest rates are still influencing investment strategies. Central banks, like the U.S. Federal Reserve and the European Central Bank, are keeping monetary policies tight, raising the cost of borrowing and dampening speculative investments in commodities, including metals, finally, geopolitical factors, particularly China’s slow recovery post-COVID, impact metal consumption and production worldwide.

Section 2: Critical Metals to Watch in 2025

Harish: You mentioned copper, lithium, and cobalt. Are these the main metals traders should focus on in 2025, or are there other emerging opportunities?

Venkatesh: While copper, lithium, and cobalt are crucial, especially because of their roles in electric vehicles and renewable energy, traders should also keep an eye on aluminum and zinc. Aluminum is lightweight and critical for the automotive and aerospace industries, particularly with the shift to electric vehicles. Zinc, used in galvanizing steel, is seeing rising demand due to infrastructure projects and renewable energy installations.

Additionally, lesser-known metals like vanadium and rare earth elements are starting to gain attention. Vanadium, for example, is used in large-scale energy storage systems, which are key for managing renewable energy. Rare earth elements, critical for high-tech applications like electric motors and smartphones, are also increasingly important.

Section 3: Supply and Demand Dynamics

Harish: That’s a broad range of metals. Will the supply of these metals be able to keep up with the growing demand, especially with the global push for sustainability?

Venkatesh: Supply is where things get tricky. For metals like lithium, nickel, and cobalt, there are significant constraints. Mining capacity is limited, and geopolitical risks, particularly in regions like the Democratic Republic of Congo and Indonesia, heighten supply chain vulnerabilities. Additionally, environmental regulations are tightening, especially in developed countries, making it harder to scale up mining operations quickly. While recycling will help, especially for metals like copper and aluminum, it won’t be sufficient to fully meet the surging demand.

Section 4: Geopolitical Risks and Their Impact

Harish: Geopolitics has always influenced metal markets. What specific events should traders be watching closely in 2025?

Venkatesh: Geopolitical events are a key factor in metal trading. The Russia-Ukraine conflict has already had a profound impact, especially on metals like palladium and aluminum, as Russia is a major producer of both. Sanctions and supply chain disruptions have led to price spikes and volatility.

China, as both a consumer and producer of metals, is another critical factor. Any shifts in their economic policies, particularly related to infrastructure and real estate, will influence global demand. Moreover, the ongoing U.S.-China tensions, especially in trade and technology, could further disrupt supply chains, particularly for critical metals like rare earth elements used in high-tech industries.

Section 5: Technological Innovations and Sustainability

Harish: Let’s talk about technology. How is it influencing metal trading, and what role does sustainability play?

Venkatesh: Technology is reshaping metal trading in two major ways. First, on the trading side, innovations like blockchain and AI are enhancing transparency and improving efficiency. Blockchain is helping to trace the origin of metals, ensuring that they are ethically sourced, which is increasingly important for both consumers and companies focused on sustainability.

In mining and production, AI and automation are optimizing processes and reducing costs. Autonomous equipment, like trucks and drilling machines, are already being used in large-scale mining operations to improve safety and lower environmental impacts. Sustainability is also driving the development of “green” metals—those produced with minimal environmental harm. This will be a growing trend as the world continues to focus on reducing its carbon footprint.

Section 6: Challenges and Opportunities Ahead

Harish: With all this in mind, what are the biggest challenges traders will face in 2025?

Venkatesh: Volatility will be a major challenge, with so many factors affecting metal prices—geopolitical risks, supply chain disruptions, and even technological changes. Traders will need to adapt to a constantly shifting landscape, using more sophisticated hedging strategies to manage risk.

Regulatory challenges are another hurdle. With increasing emphasis on ethical sourcing and environmental regulations, traders will need to ensure they’re sourcing metals responsibly. Navigating these regulations will add complexity to the market.

Harish: And what about opportunities? Where should traders be focusing their attention?

Venkatesh: The energy transition offers tremendous opportunities. Metals like copper, lithium, and nickel will see surging demand as the world moves toward greener technologies. Traders who can position themselves in these markets early will likely see significant returns. Additionally, adopting new technologies like blockchain for more transparent trading practices will give early movers a competitive edge.

Section 7: Looking Ahead to the Future of Metal Trading

Harish: Looking ahead, what do you see as the long-term future of metal trading?

Venkatesh: The long-term future will be heavily influenced by sustainability and the circular economy. Recycling will become more important, as the world will increasingly turn to reusing metals rather than relying solely on new mining. Innovations in recycling technologies and more efficient supply chain management will be crucial.

On the trading side, digitization will continue to play a significant role. Blockchain and AI will further transform the industry, making the trading process more transparent and efficient. As we move into 2025 and beyond, those who can adapt to these changes will thrive in a complex, rapidly evolving market.

Harish: Venkatesh, thank you for sharing your insights! It’s clear that the metal trading landscape is heading into an exciting but challenging future. With the right strategies, traders can navigate the complexities and seize the many opportunities ahead.

Venkatesh: Thanks, Harish! It’s been great discussing the trends. I’m sure the next few years will be pivotal for the industry.

Spacenex Aero Pvt. Ltd’s name was inspired by SpaceX—the Elon Musk-founded company that designs, manufactures and launches advanced rockets and spacecraft. But unlike SpaceX, Spacenex isn’t widely known. It is a mid-sized contract manufacturing company in Bengaluru, which till two years back, could mostly make and test aerospace and defence components. Parts of cockpits; thermal equipment; rocket launchers; night vision lenses; heat sinks, and night vision cameras, among others.

Manufacturing services provider Zetwork will invest around ₹1,000 crore to ramp up its production capabilities for laptops, servers, smartphones, hearables, televisions, and telecom equipment. With a sharp focus on competition, it is aiming to challenge electronics manufacturing services providers in the Indian and exports markets, primarily targeting the US.

ZETWERK Manufacturing Businesses, a global contract manufacturing leader, has bolstered its electronics manufacturing services (EMS) division leadership with several key appointments.

These hires aim to solidify ZETWERK’s position as a top EMS provider and accelerate its growth within the sector. The company has invested significantly in its EMS business, including taking over two Noida facilities and committing Rs 1,000 crore to expand the division. This aligns with India’s manufacturing goals and has earned ZETWERK incentives from the Uttar Pradesh government.

Speaking at TechSparks 2024, Zetwerks Co-founders Amrit Acharya and Srinath Ramakkrushnan talk about the company’s vision to boost India’s manufacturing economy and challenge Chinese industry.

India’s aim of becoming a $5 trillion economy will require atleast $1 trillion to come in from manufacturing, said Amrit Acharya, Co-founder and CEO of Zetwerk, addressing the role of manufacturing in driving Indian industry.

Zetwerk has developed two proprietary operating systems, the Zetwerk Order Management System (ZOS) and the Zetwerk Integrated Supply Operations (ZISO), improves operational efficiency in contract manufacturing. These systems help streamline processes such as managing lead times, tracking customer inquiries, and optimizing the supply chain. ZOS, for instance, can analyze engineering drawings, provide real-time price updates, and manage orders from procurement to delivery. This technology has significantly reduced costs and improved delivery times, enhancing Zetwerk’s ability to scale rapidly while maintaining quality compliance across industries like oil and gas, infrastructure, and consumer electronics

Zetwerk plans to invest ₹500 crore over the next two years to enhance its renewable energy manufacturing capabilities. Cofounder and COO Srinath Ramakkrushnan revealed that the investment will be a mix of debt and equity based on the company’s balance sheet. Zetwerk aims to grow in solar and offshore wind, focusing on the US and Europe.

Zetwerk Manufacturing has secured a significant order from NTPC Renewables to supply 1,515 megawatt peak (MWp) of solar photovoltaic (PV) modules for NTPC’s 1.2 gigawatt Khavda Solar Project in Gujarat. This order, valued at around ₹2,000 to ₹2,500 crore, is four times larger than a previous order from NTPC in 2023. The modules, which will be fully made in India and compliant with the Approved List of Models and Manufacturers (ALMM), are expected to be delivered within 210 days. This deal strengthens Zetwerk’s role in India’s renewable energy push and underscores its commitment to advancing domestic solar manufacturing capabilities​