Shyam Metalics enters the energy storage arena with battery-grade aluminium foil for lithium-ion cells

Shyam Metalics and Energy Limited, a prominent and leading integrated metal-producing company, has made a significant announcement regarding its entry into energy storage space.

As detailed in the official report, the company officially announced its entry into the energy storage sector with battery-grade aluminium foil, a critical component in lithium-ion cells. The company is gearing up to become one of the first large-scale domestic contributors to the government’s AatmaNirbhar Bharat initiative in the battery energy storage sector.

To produce 1 GWh (Gigawatt-hour) of LFP (Lithium Iron Phosphate) cells, which power a wide variety of electric vehicles and energy storage systems, 350 tons of high-purity, uniform-thickness aluminium foil is required. This aluminium foil serves as the positive (cathode) current collector. The demand doubles for Sodium-ion batteries, where both positive and negative current collectors are expected to use aluminium foils.

The customised battery aluminium foil from Shyam Metalics with thicknesses ranging from 12 microns to 20 microns, has undergone testing and validation by third-party laboratories.

The company also possesses state-of-the-art German equipment capable of manufacturing aluminium foils as thin as 6 microns. This capability aligns with future requirements, as foil thickness is expected to decrease with the evolution of Lithium-ion cell technologies to enhance cell gravimetric energy density.

According to various industry and policy assessments, India needs over 903 GWh of energy storage system capacity to decarbonize its mobility and power sectors, with Lithium-ion batteries expected to hold a significant market share.

During the April-November 2022 period, India spent USD 1.8 billion to import 5,486.18 kWh of lithium-ion batteries, compared to the import of 6,167.68 lakh units of lithium-ion batteries for USD 1.83 billion in 2021-22. This indicates an increase in imports due to rising demand for electric vehicles and green energy solutions.

As India prepares to establish Lithium-ion cell Giga-factories as part of the government’s production-linked incentive (PLI) scheme, Shyam Metalics’ entry into the raw material space for Lithium-ion cell manufacturing strengthens the indigenization drive in the strategically important energy storage solutions sector and provides the company with a future-relevant business opportunity.

The company’s stock opened the day at Rs 434, unchanged from the previous closing price of Rs 434.85. As of the time of writing this article, the company’s shares are trading at Rs 439, representing nearly a 1% increase from the previous closing price.

The current market capitalization of the company stands at Rs 11,198 crore, and the stock has delivered an impressive return of 62% over the last six months.

Investors must keep this stock on their radar.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.