Hindalco Industries Invests US$96 Million in New Battery Foil Plant in Odisha

by APAZONE
0 comment 2 minutes read

Hindalco Industries, a major player in India’s aluminium production sector, announces a substantial investment of 8 billion rupees (US$96 million) in establishing a battery foil manufacturing facility in Odisha, India.

In a strategic move to strengthen its presence in the electric vehicle (EV) market, Hindalco Industries, a leading aluminium producer in India, unveiled plans to invest US$96 million in a new battery foil manufacturing plant. The facility, set to be operational by July 2025 in Odisha, is designed to produce 25,000 metric tons of aluminium foils annually, a crucial component in lithium-ion cells used in rechargeable batteries for EVs.

The announcement resulted in a surge of more than 2% in Hindalco’s shares. The new plant aims to tap into the growing domestic EV market in India, projected to experience a compound annual growth rate of 49%, potentially reaching annual sales of 10 million units by 2030, according to a recent Economic Survey.

Sneha Poddar, Associate Vice President at Motilal Oswal Financial Services, emphasized the revenue potential of the Hindalco facility, projecting significant contributions from FY27 onwards. The demand for aluminium foil in manufacturing rechargeable batteries for EVs is expected to be substantial.

Hindalco’s Managing Director, Satish Pai, highlighted the strong traction in battery materials demand, driven by the promising outlook for the EV and grid storage sectors. The company has also disclosed collaborations with original equipment manufacturers (OEMs) for developing and manufacturing various components, including battery enclosures, motor housing, and busbars.

While the Odisha facility marks a significant expansion, Hindalco already operates a plant in Maharashtra, western India, dedicated to producing battery foils for lithium-ion cells.

Despite these advancements, Hindalco reported lower-than-expected profits for the July-September period, attributing it to reduced aluminium prices and weakened demand. As a subsidiary of the Aditya Birla Group, Hindalco remains a key player in the global aluminium industry, with operations in 10 countries, focusing on aluminium, alumina, and bauxite.

Source: Apazone

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