Shyam Metalics to foray into raw material for Lithium-ion cell manufacturing

The company is working to become one of the first significant domestic contributors to the government's AatmaNirbhar Bharat project for battery energy storage.

Metal producer Shyam Metalics and Energy Ltd. has announced its entry into the energy storage sector with battery-grade aluminum foil, a critical component in lithium-ion cells.

The aluminum foil manufacturer, with an annual production capacity of 20,000 tonnes, aims to help India secure a significant raw material stake in the global lithium-ion cell industry, which is expected to reach a capacity of 6,500 GWh/year by 2030, as per the company's exchange filing on September 25.

Third-party laboratories have tested and verified Shyam Metalics' customized battery aluminum foil, which comes in thicknesses ranging from 12 microns to 20 microns. Additionally, the company possesses cutting-edge German machinery capable of producing aluminum foils as thin as 6 microns.

This thinner foil will be suitable for future requirements as lithium-ion cell technologies evolve to enhance the cell's gravimetric energy density, measuring the amount of energy contained per unit weight of the cell expressed in terms of Watt-hour/Kilogram.

Brij Bhushan Agarwal, Vice Chairman and managing Director at Shyam Metalics, stated, "This move will free India from import dependence, strengthen upstream component manufacturing, enhance material processing, nurture skills, foster technology know-how, and fortify the infrastructure for a wholly indigenous value chain."

India needs approximately 903 GWh of energy storage system capacity to decarbonize its mobility and power sectors, and lithium-ion batteries are expected to dominate a significant portion of this market, according to multiple industry and policy evaluations.