In a strategic move to capitalize on the burgeoning market for electric vehicles (EVs) and energy storage systems, Hindalco Industries, the aluminum flagship of the Aditya Birla Group, has unveiled plans to invest ₹800 crore in establishing a new plant dedicated to the production of high-quality aluminum foil essential for rechargeable batteries.
This new facility, slated to be operational near Sambalpur in Odisha by 2025, will be financed through internal accruals, as indicated in a stock filing by the aluminum rolling and recycling company. In its initial phase, the plant aims to manufacture 25,000 tonnes of battery-grade aluminum foil.
Hindalco’s Managing Director, Satish Pai, highlighted the company’s positive momentum, with early commitments through Memorandums of Understanding (MoUs) and capacity bookings for the forthcoming facility from global customers. The demand for battery-grade aluminum foil in India is anticipated to witness substantial growth, reaching 40,000 tonnes by 2030, primarily fueled by the proliferation of gigafactories engaged in advanced cell manufacturing.
Battery manufacturers utilize high-performance aluminum foils as current collectors for cathode materials. The technological breakthrough achieved by Hindalco at its Mouda unit in Maharashtra has facilitated the production of fine-quality battery foils. The new unit in Odisha will further enhance the company’s capacity to supply materials to gigafactories globally.
In addition to Hindalco, Shyam Metalics and Energy Ltd has also ventured into battery-grade aluminum foil manufacturing. The strategic investments underscore Hindalco’s commitment to transitioning from a metal manufacturer to a provider of high-tech metal solutions.
Pai emphasized that Hindalco’s investments in battery materials and technologies align with the vision of building an Aatmanirbhar Bharat (self-reliant India). The company’s focus extends beyond aluminum foils to developing coatings that enhance performance characteristics, mechanical strength, thickness, adhesion, and corrosion resistance.
Collaborating closely with original equipment manufacturers (OEMs), Hindalco is engaged in co-developing critical components such as battery enclosures, motor housings, busbars, structural and safety components, and lightweight load bodies, many of which are pioneering developments in India.
Hindalco’s consolidated financials for Q2FY23 reflected stability, with flat year-on-year (YoY) profit at ₹2,196 crore and a YoY decline of 3.7% in consolidated revenue from operations, primarily attributed to the fall in global copper prices. Consolidated Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) witnessed a 6% YoY increase, reaching ₹6,096 crore with an EBITDA margin of 11.25%. On Tuesday, the company’s stock closed marginally higher at ₹527.55.
