Aditya Birla Group's Hindalco Industries, on Tuesday, revealed its intentions to amplify the production capacity of high-quality aluminum foil utilized in rechargeable batteries, catering to the burgeoning market for electric vehicles (EVs) and energy storage systems. As per a regulatory disclosure, the company is allocating Rs 800 crore to erect a new facility close to Sambalpur in Odisha, set to initiate output of 25,000 tonnes of this sturdy material, crucial in the construction of Lithium-ion and Sodium-ion cells.
Anticipated demand for battery-grade aluminum foil in India is poised to surge significantly to 40,000 tonnes by 2030, primarily fueled by the rapid expansion of gigafactories engaged in advanced cell manufacturing.
Satish Pai, the managing director of Hindalco Industries, emphasized, "We're witnessing swift growth in the demand for battery materials, propelled by a promising outlook for electric vehicles and grid storage sectors. Localizing raw materials is pivotal in these strategic domains."
He added that the company is hence investing in diverse ventures concerning battery materials and technologies, aligning with the vision of a self-reliant India. "The investment in this new battery foil mill is yet another stride in this direction," Pai affirmed.
Hindalco's Mouda unit is presently undergoing qualification processes with Lithium-ion cell manufacturers across India, Europe, and the United States. According to the company, the forthcoming unit in Odisha will further strengthen its ability to supply materials to Gigafactories worldwide.
Manufacturers of cells utilize high-performance aluminum foils as a current collector for cathode materials. The company has stated its ongoing development of these foils to elevate mechanical strength, fine-tune thickness, and refine surface characteristics for these sophisticated application foils. Additionally, they're focusing on new coatings for battery foils that promise enhanced performance through better adhesion, reduced resistance, and minimized corrosion. Leveraging its robust research and development capabilities, Hindalco aims to offer customized solutions for its clientele.
Moreover, the company highlighted its collaboration with original equipment manufacturers (OEMs) to jointly develop critical components such as battery enclosures, motor housings, busbars, structural and safety elements, and lightweight load bodies—many of which are pioneering designs in India.
The new plant will be situated adjacent to a 25 MW solar power facility and will have access to additional solar energy through a 400 KV National Grid connection. Its scheduled commissioning is set for July 2025.
In intraday trading, Hindalco Industries stock surged by 3.10% to reach a 52-week high of Rs 538.70, surpassing the previous close of Rs 522.50 on the BSE.
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