Hindalco to invest Rs 800 crore in Odisha for battery foil unit

In a strategic move to meet the rising demand in the electric vehicle (EV) and energy storage systems markets, Hindalco Industries, a company under the Aditya Birla Group, unveiled plans on Tuesday, 12 December 2023, to invest Rs 800 crore in expanding its manufacturing capacity of high-quality aluminium foil. This resilient product serves as a crucial component in the production of lithium-ion and sodium-ion cells, forming the backbone of rechargeable batteries.

In a regulatory filing, the company disclosed its intention to construct a new plant near Sambalpur in Odisha with an initial production capacity of 25,000 tons of battery-grade aluminium foil. The move aligns with the anticipation of a manifold increase in demand, reaching 40,000 tons by 2030, driven by the proliferation of gigafactories dedicated to advanced cell manufacturing.

Satish Pai, the Managing Director of Hindalco Industries, emphasized the swift traction in battery materials demand, particularly fueled by the promising outlook for electric vehicles and grid storage. Highlighting the importance of raw material localization in such strategic sectors, Pai stated that the investment in the new battery foil mill is a significant step towards supporting Atmanirbhar Bharat, India’s self-reliant initiative.

Hindalco’s Mouda unit is actively qualifying with lithium-ion cell manufacturers in India, Europe, and the United States. The new unit in Odisha aims to enhance the company’s capability to supply materials to gigafactories worldwide.

The company is not only focusing on the production of high-performance aluminium foils but is also delving into innovations to improve the mechanical strength, thickness precision, and surface characteristics. Research and development efforts are directed towards introducing new coatings on battery foils, aiming to enhance performance by improving adhesion, reducing resistance, and minimizing corrosion.

In addition to its core business, Hindalco Industries is collaborating with original equipment manufacturers (OEM) to co-develop critical components such as battery enclosures, motor housing, busbars, structural and safety components, and lightweight load bodies. Many of these components are being designed and developed for the first time in India, showcasing the company’s commitment to pioneering advancements in the EV ecosystem.

The upcoming factory, scheduled for commissioning in July 2025, will be situated adjacent to a 25 MW solar power plant and will have access to additional solar energy from a 400 KV National Grid connection. The stock market responded positively to the announcement, with Hindalco Industries’ stock rising 3.10% intraday to a 52-week high of Rs 538.70 against the previous close of Rs 522.50 on BSE.