Hindustan Zinc has shortlisted Rajasthan for its zinc battery manufacturing plant and is in advanced level talks with a "large battery manufacturer", Chief Financial Officer Sandeep Modi told Moneycontrol in an exclusive interview on January 28. Modi did not name the battery manufacturer but mentioned that "principal understanding" has been reached.
The move comes as parent Vedanta Ltd announced plans to establish the world’s first industrial Zinc Park in the state. Last month, Vedanta Group Chairman Anil Agarwal outlined the strategic importance of the Zinc Park as a critical component of Vedanta’s fresh Rs 1 lakh crore investment across the zinc, oil and gas, and renewable energy sectors in Rajasthan.
"We are in the advanced stage with one of the largest battery manufacturers, but I can't divulge the name. The principal understanding has already been reached, and we will be taking it forward accordingly," Modi said in the interview. He further added, "The battery manufacturing facility will primarily be in Rajasthan, where our chairman, along with the Chief Minister, announced the Zinc Park as part of Rising Rajasthan."
Last year, the company said it is is looking to set up a battery manufacturing facility in India in partnership with US-based battery tech firm Aesir Tech, which will look at zinc battery solutions for various types of applications.
The facility could look into other potential metals too, but primarily the focus is on zinc, according to Misra. "The partnership is all about bringing that technology to India and helping them set up large battery manufacturing capacity in India and we being the sole supplier of zinc in it," Chief Executive Officer Arun Misra had told Moneycontrol in August last year.
The move comes at a time when India is moving away from fossil fuels and increasing renewable energy capacity, wherein battery will have a crucial role to play.
In June, the mining company announced a memorandum of understanding (MoU) with Aesir Tech, under which it agreed to supply Zinc to Aesir for Zinc-based batteries. The move aligns with Hindustan Zinc's efforts towards exploring emerging applications of zinc in the clean energy transition, it said in a press release.
Aesir specialises in developing next-generation Nickel-Zinc battery technologies. Its batteries are currently in use in the aerospace, defense and critical infrastructure sectors.
"We are trying to provide solutions to the growing RE Power demand for India for its own net zero commitment. We are mindful that while EV vehicles would require a different type of battery, the storage solutions in case of solar power would require a different kind of solution," Misra said explaining the rationale for the strategic move.
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