Hindalco Industries will begin local production of aluminium battery foils in India by the end of October 2025, aiming to reduce import dependency, support EV growth and meet demand for lithium-ion cell components. The project will require an investment of INR 800 crores to construct a 25,000-tonne capacity plant in Orissa to produce battery-grade aluminium foil.
Image source: indiamart
Lithium-ion technology is a key focus for Hindalco, as all three metals it works with, aluminium, copper and Specialty Alumina, play crucial roles in battery production. Aluminium foil serves as a cathode substrate, copper as an anode substrate, and Specialty Alumina as a ceramic coating.
Aluminium also offers significant advantages for electric vehicles. Its superior thermal stability and heat dissipation make it ideal for battery enclosures. Additionally, its lightweight and malleable properties make it the preferred choice for battery pack components. This synergy makes lithium-ion batteries a natural fit for Hindalco.
Hindalco's plans to expand into copper foil and Specialty Alumina/boehmite are still in the early stages, with formal development plans yet to be finalised. As a fully integrated company, Hindalco operates its bauxite mines in India, covering the entire value chain from mining to the final aluminium foil plant, which makes its aluminium foil a 100 per cent made in India product.
The aluminium foil used in lithium-ion cells contributes approximately 4 to 5% of the bill of materials, depending on the battery chemistry. Cell manufacturers will be the primary customers for Hindalco's aluminium foil. In the battery production process, the aluminium foil acts as a substrate for the cathode. The process involves creating a slurry, applying it to the foil, drying it, and then calendaring the coated foil. There is also a significant opportunity to localise copper foil.
With 250 tonnes of aluminium required per GWh, 25,000 tonnes of battery foil can support nearly 100 GWh of cell production. The qualification process varies by customer, involving multiple stages with samples that take several months to test. Early customer qualification is already in progress at Hindalco's plant in Mouda, near Nagpur.
Hindalco has been actively collaborating with industry associations to emphasise the need to localise key components like aluminium foil. While there is currently no Production-Linked Incentive (PLI) for this project, the company plans to engage with the government on future investments to explore the best support options for the industry.
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