Shyam Metalics and Energy Limited has forayed into the energy storage sector and will manufacture battery-grade aluminum foil, a critical component in lithium ion cells.

The production will take place in the city-based integrated metal producer’s greenfield plant at Howrah, which was commissioned towards the end of 2021 and has incurred a capex of around
Rs 400 crore.

The company’s scrips at Rs 441.70 were up 1.58 per cent on the BSE on Monday.

The company in a statement said that for the production of 1 GWH (gigawatt hour) of LFP (Lithium Iron Phosphate) cells, which power a wide variety of electric vehicles and energy storage systems, around 350 tonnes of high-purity and uniform thickness aluminum foil is required, which acts as a cathode collector.

According to industry assessment, India needs over 903 GWh of energy storage system capacity to decarbonise its mobility and power sectors and lithium batteries will have a big market share in this.

“We have a collaboration with German firm Achenbach. Even though we started producing foils for packaging needs, over the last one year, we have made certain processes as well as technology changes in the plant to make it capable of rolling battery foils,” said Sheetij Agarwal, head of business excellence and strategy, Shyam Metalics.

With manufacturers looking to put up lithium-ion cell giga factories and some taking benefit of the production-linked incentive, the company anticipates a steady flow of demand and a rising share of revenue from the aluminum business in the coming years.