Hindalco to invest ₹800 crore to build its battery foil manufacturing facility in Odisha, shares hit 52-week high

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Hindalco Industrieswill set up a new battery foil manufacturing facility with an investment of ₹800 crore in Odisha. The manufacturing unit will be commissioned by 2025, said the aluminum rolling and recycling company in its stock filing on Tuesday. The plant located in Odisha's Sambalpur will initially produce 25,000 tonnes of the product which is crucial for the production of Lithium-ion, and Sodium-ion cells.

After the announcement the company shares were trading at their 52-week high mark of ₹538.70 per share on BSE at 11 am on Tuesday. The company is planning to expand its manufacturing capacity of fine-quality aluminium foil. The product is heavily needed in the manufacturing of rechargeable batteries to serve the rapidly growing market for electric vehicles (EVs) and energy storage systems.

“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’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," said the company in its stock filing.

Hindalco's Mouda unit in Maharashtra is 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 the capability to supply material to Gigafactories across the world. High-performance aluminium foils are required by cell makers as a current collector for cathode materials.