The company stated that these projects will help India achieve localization of key raw materials for lithium-ion batteries, supporting the development of electric mobility and energy storage systems while enhancing domestic manufacturing capabilities for high-quality aluminum products. The battery-grade aluminum foil facility, sourcing raw materials directly from the FRP complex, can support lithium-ion battery manufacturing capacity of up to 100 GWh.
Hindalco indicated that these projects are part of its broader growth plan, involving an investment of approximately ₹370 billion in upstream and downstream aluminum operations in Odisha. The investment in Odisha is a significant component of the company's overall growth capital expenditure of ₹550 billion across India. As India's largest flat-rolled products producer, Hindalco holds over 50% of the domestic market share.
Currently, nearly 40% of India's flat-rolled aluminum relies on imports. The expanded FRP capacity is expected to reduce import dependency by nearly half, support domestic manufacturing, and enhance India's competitiveness in high-grade aluminum products. The expansion of Aditya Aluminum's smelter also reflects progress in the energy transition, with plans to meet part of its power demand through round-the-clock renewable energy, integrating sustainability into industrial growth.
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, commented: "India's manufacturing growth hinges on integration, value addition, and sustainability. Through Hindalco, we are building a fully integrated aluminum ecosystem, spanning from upstream resources to high-value downstream products. Our long-standing partnership with Odisha continues to play a vital role in this journey. This strategy strengthens India's self-reliance, supports critical sectors, and accelerates the nation's transition to advanced, sustainable manufacturing."
Satish Pai, Managing Director of Hindalco Industries, added: "The FRP expansion and smelter growth in Sambalpur exemplify our integrated growth strategy across the value chain. This enables Hindalco to provide high-quality aluminum solutions for packaging, defense, electric mobility, renewable energy, and advanced manufacturing, allowing us to robustly support India's industrial ambitions while creating long-term value."
Hindalco has been operating in Odisha for over 15 years, having invested more than ₹250 billion in areas such as bauxite mining, alumina refining, primary aluminum smelting, and downstream manufacturing. The company's operations connect upstream resources with high-value downstream products like FRP and battery foil, forming a complete aluminum value chain. The broader investment plan also includes the Kansariguda alumina refinery, Meenakshi coal mine, and projects for specialty materials and ancillary manufacturing.
