Hindalco Industries, an Aditya Birla Group company, will invest ₹800 crore to build a new plant near Sambalpur in Odisha to produce 25,000 tonnes of fine-quality aluminium foil, the backbone of lithium-ion and sodium-ion cells.
The factory will be located alongside a 25 MW solar power plant, and could access additional solar energy from a 400 KV national grid connection. The new plant is expected to be commissioned in July 2025 and will supplement Hindalco’s existing facility at Mouda in Maharashtra.
By 2030, the demand for battery-grade aluminium foil is expected to grow manifold to 40,000 tonnes, primarily driven by growth in gigafactories for advanced cell manufacturing.
Hindalco plans to expand its manufacturing capacity for the fine-quality aluminium foil used in rechargeable batteries, in line with the rapidly growing market for electric vehicles (EVs) and energy storage systems.
Localisation of raw material supply
Satish Pai, Managing Director, Hindalco Industries, said the company is seeing a fast traction in battery materials demand, driven by an impressive outlook for the EV and grid storage sectors.
Raw material localisation is critical in such strategic sectors, he said.
Hindalco has achieved the technology breakthrough needed for the manufacture of fine-quality battery foils at its Mouda unit, which is currently in the process of qualifying with lithium-ion cell manufacturers in India, Europe and the US. The new unit in Odisha will augment capability to supply material to gigafactories around the world.
High-performance aluminium foils are used by cell makers as a current collector for the cathode materials.
Co-development with OEMs
The company is already developing such foils to raise the bar on mechanical strength, fine-tune the thickness, and enhance surface characteristics. It is working on new coatings on the battery foils to boost performance by delivering better adhesion, lower resistance, and reduced corrosion.
The company is working with original equipment manufacturers (OEM) to co-develop and make critical components such as battery enclosures, motor housings, busbars, structural and safety components, and lightweight load bodies.