The establishment of Hindalco's battery foil manufacturing unit in Odisha might be the motivation behind C4V's forging of a contract with one of the largest aluminium manufacturers in India. This partnership will enhance trade relations between the companies, ensuring an uninterrupted flow of coated aluminium foils, battery-grade aluminium foil and other structural parts for Li-ion batteries.
Supply agreement analysis
The US-based lithium-ion battery technology firm has signed the Memorandum of Understanding (MoU) with provisions for 2,000 tonnes of battery-grade aluminium foil delivery over an extended period of five years. The document also graphs a strategic discography for the successful advancement of technology and material development collaborations. The entire action would be highly beneficial for the Indian EV market as it will trigger indigenous growth and bolster native manufacturing capabilities.
This partnership with the US-based firm might be the first stepping stone in developing a self-dependent EV industry in India. On December 12, Hindalco's announcement to open a new 25,000 tonnes battery foil manufacturing plant in Odisha could be the reason for increased foreign rumination.
Hype in the production of Electric Vehicles
Battery-operated electric vehicles (EVs) are becoming increasingly popular as people become more environmentally conscious. However, one of the main reasons they are still expensive compared to regular internal combustion cars is due to the cost of lithium, which is a crucial component in batteries. At present, the average cost of batteries per kilowatt-hour is approximately USD 160, and the majority of this cost is related to the price of lithium. Lithium is not only expensive but also difficult to source. It is mainly mined in Australia and South America, where it is extracted from lithium-rich ores.
Constraints of the Lithium-ion battery module
The process of extracting lithium is complicated and expensive, which further drives up the price of the final product. Once removed, the lithium is transported to China, which refines 58 per cent of the world's lithium. After refining, the lithium is finally shipped again to different parts of the world, where it is assembled into batteries. This process takes place in countries like China, Japan, Korea, and the US. All of these factors contribute to the high cost of batteries and, ultimately, the high price of electric cars.
If you wish to learn more about aluminium foils and their uses, please go through AL Circle's special report on the same, Aluminium Foil and its End Uses.
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