Hindalco Industries to Invest Rs 800 Crore in New Battery Foil Plant in Odisha

12 Dec 2023 , 01:41 PM

Hindalco Industries plans to invest Rs 800 crore to establish a new battery foil production facility in Odisha, India, in order to capitalise on the burgeoning electrical vehicle industry. The aluminium rolling and recycling company stated in its IPO filing on Tuesday that the manufacturing unit will be put into service by 2025.

Initially, the factory in Sambalpur, Odisha, will generate 25,000 tonnes of the chemical, which is essential for the manufacturing of sodium- and lithium-ion cells.

Following the news, on Tuesday at 11 a.m. on the BSE, the company’s shares were trading at Rs 538.70, the 52-week high. The company intends to increase the amount of high-quality aluminium foil it can produce. In order to meet the demands of the constantly expanding market for energy storage systems and electric vehicles (EVs), the product is crucial to the production of rechargeable batteries.

The need for battery materials is increasing quickly, which is being fueled by the promising futures of the grid storage and electric vehicle industries. Localization of raw materials is essential in these kinds of important industries, according to Hindalco Industries Managing Director Satish Pai.

‘Hindalco has a formidable launch pad due to its extensive experience in foil and sheet rolling, deep understanding of metallurgy, and access to its own aluminium metal,’ the company stated in its IPO filing.

The Mouda factory of Hindalco, located in Maharashtra, is currently undergoing qualification with producers of lithium-ion cells from Europe, the United States, and India. The addition of the new facility in Odisha will increase the capacity to supply raw materials to Gigafactories worldwide.

Cell manufacturers need high-performance aluminium foils to act as a current collector for cathode materials.  The company is developing new coatings for the battery foils in an effort to improve adhesion, decrease resistance, and minimise corrosion, all of which will improve battery performance. It will make use of its strong R&D to give customised solutions to its clients.

The manufacturer of aluminium has declared that it will back the International Aluminium Institute’s (IAI) new greenhouse gas (GHG) project, which was unveiled at the UN Climate Change Conference (COP28).

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