Hindalco plans expansion into copper foil to tap into growing market for EVs, energy storage

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26 Aug, 2025 12:21

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Metals major Hindalco Industries is planning to manufacture copper foils, primarily used in lithium-ion batteries, as the company aims to capitalize on the booming battery materials market and strengthen its position in the rapidly evolving energy storage sector.

Lithium-ion batteries are the most common type of rechargeable batteries found in devices like electric vehicles (EVs), smartphones, laptops, and other portable electronic devices.

"Copper foils will be made in a separate facility, we are yet to finalise the location and initial capex. We have selected the technology to make the foil and it would take another 2.5 years to operationalise the plant," said Hindalco's Managing Director Satish Pai. The move comes as the company continues to focus on value added products in copper. The company is also setting up a  copper and e‑waste recycling facility in Gujarat.

Copper foils are crucial in the lithium-ion batteries to ensure efficient electrical conductivity and stability within the battery, contributing to the overall performance, energy density, and lifespan of the battery. The EV sector alone is expected to drive a substantial portion of this demand, as copper foils are essential in improving battery efficiency, performance, and longevity.

Last year, Hindalco had announced plans to manufacture fine-quality aluminium foil used in rechargeable batteries, with an investment of Rs 800 crore. This  new plant is to be set up near Sambalpur in Odisha and expected to be commissioned by 2025.

The company currently sells copper rods and cathodes which find applications in the power, automobiles, construction, consumer goods and electronics industry. Revenue from the copper business was highest at Rs 49,321  crore in FY24.

"In the Copper business, push on renewables, acceleration in urbanisation and infrastructure creation, and digitalisation continue to drive demand," the company said in its annual report published last month.

As of now, Hindalco depends on imports for securing copper concentrates. However, Pai flagged that the company is exploring a copper block in Madhya Pradesh, received through the critical minerals auction.