In a significant move towards expanding its foothold in the electric vehicle (EV) market, Hindalco Industries, one of India’s leading aluminium producers, announced on Tuesday its plans to invest 8 billion rupees (US$96 million) in setting up a battery foil manufacturing facility. The new plant, which will be situated in the eastern state of Odisha, India, is expected to become operational by July 2025. This facility is designed to produce 25,000 metric tons (approximately 55,116,000 pounds) of aluminium foils annually, a critical component in lithium-ion cells. These cells are essential for rechargeable batteries predominantly used in EVs.
The announcement of this investment saw Hindalco’s shares surge by more than 2%. This new facility is poised to capitalize on the rapidly growing domestic EV market in India, which, according to a recent annual Economic Survey, is anticipated to expand at a compound annual growth rate of 49%, potentially leading to annual sales of 10 million units by 2030.
Sneha Poddar, Associate Vice President at Motilal Oswal Financial Services, highlighted the significance of this development.
“The (new) Hindalco facility would translate into revenue from FY27 onwards, its revenue potential is huge as aluminium foil would be heavily needed in manufacturing rechargeable batteries for EVs.”
Further reinforcing the strategic importance of this venture, Hindalco’s Managing Director, Satish Pai, emphasized the growing demand for battery materials.
“We are seeing a strong traction in battery materials demand, driven by an impressive outlook for the EV and grid storage sectors.”
Hindalco, a subsidiary of the Aditya Birla Group, also revealed its ongoing collaborations with original equipment manufacturers (OEMs) in co-developing and manufacturing components such as battery enclosures, motor housing, and busbars. The company did not specify the names of these OEMs.
In addition to the Odisha facility, Hindalco operates a plant in Maharashtra, western India, currently engaged in producing battery foils for lithium-ion cells.
Despite these developments, Hindalco reported a profit below expectations for the July-September period, attributing this to lower aluminium prices and weakened demand. The company, with operations in 10 countries, remains a key player in the aluminium industry, focusing on aluminium, alumina, and bauxite.
