Hindalco to set up Rs 800 crore battery foil plant in Odisha to tap EV market

Hindalco Industries, the world’s largest aluminium rolling and recycling company, plans to significantly expand its manufacturing capacity of fine-quality aluminium foil that is used in rechargeable batteries to serve the rapidly growing market for electric vehicles (EVs) and energy storage systems. The company is investing Rs 800 crore to build a new plant near Sambalpur in Odisha that will initially produce 25,000 tonnes of the resilient product which forms the backbone of Lithium-ion and Sodium-ion cells.

By 2030, demand for battery-grade aluminium foil in India is expected to grow manifold to 40,000 tonnes, primarily driven by mushrooming growth in gigafactories for advanced cell manufacturing.

“We are seeing a fast traction in battery materials demand, driven by an impressive outlook for the Electric Vehicle and Grid Storage sectors. Raw material localization is critical in such strategic sectors,” said Satish Pai, Managing Director, Hindalco Industries. “Hindalco is thus making various investments in battery materials and technologies towards building Atmanirbhar Bharat. Investment in this new battery foil mill is another such step in this direction.”

Hindalco has already achieved the technology breakthrough of manufacturing fine quality battery foils at its Mouda unit in Maharashtra. The Mouda unit is currently in the process of qualifying with Lithium-ion cell manufacturers in India, Europe and the United States. The new unit in Odisha will further augment capability to supply material to Gigafactories across the world.

High performance aluminium foils are used by cell makers as a current collector for the cathode materials. Hindalco’s deep understanding of metallurgy, extensive experience in sheet and foil rolling and access to its own aluminium metal gives it a formidable launch pad. The company is already developing such foils to raise the bar on mechanical strength, fine-tune the thickness and enhance surface characteristics of these advanced application foils. It is working on new coatings on the battery foils that will boost performance by delivering better adhesion, lower resistance, and reduced corrosion. It will tap its robust R&D to provide tailor-made solutions for its customers. 

This project will provide a stellar thrust to the government’s green initiative to reduce carbon emissions and build sustainable growth. Additionally, the company is working closely with original equipment manufacturers (OEM) to co-develop and make critical components like battery enclosures, motor housings, busbars, structural and safety components, and lightweight load bodies, many of which are being designed and developed for the first time in India. These series of investments catalyse Hindalco’s metamorphosis from a manufacturer of metal to a provider of high-tech metal solutions.

The factory will be located alongside a 25 MW solar power plant, and can access additional solar energy from a 400 KV National Grid connection. Scheduled for commissioning in July 2025, the unit will supplement Hindalco’s existing facility at Mouda in Maharashtra.