With an annual production capacity of 20,000 tons, Shyam Metalics is already a producer and exporter of aluminium foil for various industrial applications. The company's move into battery aluminium foil production is driven by the growing demand for electric vehicles (EVs) and energy storage systems that rely on Lithium Iron Phosphate (LFP) cells.

To manufacture 1 Gigawatt-hour (GWh) of LFP cells, which power a wide range of EVs and energy storage systems, 350 tons of high-purity and uniform-thickness aluminium foil are required as a positive (cathode) current collector. The demand doubles for Sodium-ion batteries, where both positive and negative current collectors use aluminium foils.

Shyam Metalics has developed customised battery aluminium foil with a thickness ranging from 12-micron to 20-micron, which has been rigorously tested and validated by third-party laboratories.

India's increasing demand for EVs and green energy solutions has led to a surge in lithium-ion battery imports. In the period from April to November 2022, India spent $1.8 billion to import 5,486.18 kWh of lithium-ion batteries, compared to 6.16 million units imported for $1.83 billion in the entire 2021-22 fiscal year.

Brij Bhushan Agarwal, Vice Chairman and managing Director of Shyam Metalics & Energy Ltd, expressed the company's enthusiasm for venturing into lithium-ion battery foil manufacturing and supporting the Indian government's efforts to localise battery cell production. Shyam Metalics & Energy Ltd shares were trading with gains of 1.04 per cent at the time of the announcement.