Hindalco bets big on electric vehicles with new battery foil plant

Foray into the EV market

Hindalco Industries, a leader in aluminium rolling and recycling, is poised to tap into the emerging electric vehicle (EV) market by investing Rs. 800 crores in a new battery foil manufacturing facility near Sambalpur, Odisha. This facility, expected to be operational by July 2025, will initially produce 25,000 tonnes of battery foil, a key component of lithium-ion and sodium-ion batteries.

This investment aligns with the anticipated surge in demand for battery-grade aluminium foil in India, set to reach 40,000 tonnes by 2030 due to the rapid growth of gigafactories. Hindalco’s existing Mouda facility, already achieving significant advancements in battery foil production, will be further supplemented by the Odisha plant, enabling it to supply material to global gigafactories.

The company’s expertise in metallurgy, sheet and foil rolling, and access to its own aluminium metal provides a strong foundation for this venture. Additionally, Hindalco is actively developing new coatings and enhancing the mechanical strength, thickness, and surface characteristics of its battery foils. Collaboration with original equipment manufacturers (OEMs) is underway to co-develop critical components like battery enclosures, motor housings, and busbars.

This investment marks a significant shift for Hindalco, transforming it from a metal manufacturer to a provider of high-tech metal solutions for the EV and green energy sectors. The facility’s location alongside a 25 MW solar power plant and access to additional solar energy reinforces the company’s commitment to sustainable practices.

Overall, Hindalco’s strategic investment in battery foil production positions them to capitalize on the booming EV market, contribute to India’s green initiatives, and solidify their leadership in providing advanced metal solutions.

Business Overview

Hindalco Industries Limited is the metals flagship company of the Aditya Birla Group. Along with its subsidiary Novelis, Hindalco is the global leader in flat-rolled products and the world’s largest recycler of aluminium.

Stock Price Movement

Today, the stock opened at Rs 529.95, with a high and low of Rs 535.00 and Rs 523.50, respectively. The stock is closed trading at Rs 534.00, which increased by 1.22%. The stock has a 52-week high of Rs 538.70 and a 52-week low of Rs 381. The company has an ROCE of 11.3% and an ROE of 11.7%, with a market capitalization of Rs 1,20,001 crore.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.