Hindalco will invest Rs 800 cr in setting up a battery film factory in Odisha

Aditya Birla Group's Hindalco Industries on Tuesday said it will invest Rs 800 crore to set up a battery film factory in Odisha. A company executive said Hindalco will evaluate opportunities in different segments of the electric mobility value chain.

In its announcement, Hindalco stated that it will set up a 25,000 tonne battery film plant, which will be commissioned in July 2025. β€œThe company is investing Rs 800 crore to build a new plant near Sambalpur in Odisha, which will initially produce 25,000 tonnes of the resilient film. product, which forms the backbone of lithium-ion and sodium-ion cells,” the company said in a statement.

Hindalco expects demand for battery-grade aluminum foil in India to reach 40,000 tonnes by 2030.

Once the unit was commissioned, Satish Pai, managing director of the company, said in an emailed response: β€œWill start with a dominant export mix. As global markets grow, we will evaluate further investments.” He added that the target market includes both export and domestic markets.

Hindalco is currently in the qualification process with lithium-ion cell manufacturers in India, Europe and the United States. β€œIn the electric vehicle value chain, we focus on battery casings, busbars, heat sinks and other electric vehicle parts made of aluminum,” Pai said. Regarding participation in the crucial mineral auctions, Pai noted: β€œWe will evaluate.”

Earlier, Hindalco had signed a Memorandum of Understanding (MoU) with Phinergy, a metal-air battery technology company, and IOC Phinergy, a joint venture between Phinergy and Indian Oil Corporation. According to the MoU, this included research and development and pilot production of aluminum sheets for aluminum-air batteries, and recycling of aluminum after use in these batteries. Pai said this project is in the development stage and in line with the MoU timelines, regardless of Tuesday's announcement.

Commenting on the demand for such battery films, Pai said in the press statement: β€œWe are seeing rapid growth in demand for battery materials, driven by impressive prospects for the electric vehicle and grid storage sectors. The localization of raw materials is crucial in such strategic sectors.”