Hindalco Bets Big on Odisha: ₹21,000-Crore Smelter Expansion to Anchor India’s EV Supply Chain

SAMBALPUR — In a move that signals a massive leap for India’s industrial self-reliance, Hindalco Industries, the metals flagship of the Aditya Birla Group, officially set into motion a multi-billion dollar expansion of its Odisha operations today. The announcement, headlined by a ₹21,000-crore expansion of the Aditya Aluminium smelter, positions Odisha as the definitive aluminum capital of the country.

The ceremony, attended by Odisha Chief Minister Mohan Charan Majhi, marked not just a capacity hike but the commissioning of a sophisticated ₹4,500-crore downstream ecosystem designed to feed the world’s growing hunger for electric vehicles.

The primary focus of today’s kick-off is the Aditya Aluminium complex in Sambalpur. The ₹21,000-crore investment is slated to add 3.6 lakh tonnes per annum to its existing smelting capacity. This move is a strategic response to the surging domestic and global demand for lightweight metals as industries pivot toward decarburization. Technically, the expansion leverages advanced smelting technology designed to optimize energy efficiency and reduce the carbon footprint per ton of primary metal. A significant operational shift involves the integration of round-the-clock renewable energy (RE-RTC) to power the smelting process, addressing long-term sustainability goals.

While the smelter expansion provides the raw muscle, the commissioning of the Flat Rolled Products (FRP) and battery foil manufacturing facility provides the technical finesse. Built with an investment of ₹4,500 crore, the facility boasts an annual capacity of 1.7 lakh tons. Crucially, this includes India’s first battery-grade aluminium foil plant. This unit is specifically engineered to produce fine-quality foils that serve as current collectors for the cathode materials in lithium-ion and sodium-ion cells. With a capacity designed to support up to 100 GWh of cell manufacturing, Hindalco is bridging a critical gap in the domestic EV supply chain.

The battery foil unit draws feedstock directly from the adjacent FRP complex, creating a seamless integrated value chain. This domestic capability is expected to nearly halve India’s current reliance on imported flat-rolled aluminium, which accounts for roughly 40 percent of the nation's consumption. By localizing production, Hindalco is not only securing raw materials for gigafactories but also working on advanced coatings to enhance adhesion and lower resistance in battery applications.

Today’s inaugurations are a major slice of Hindalco’s broader strategy. The Odisha-specific investment plan totals ₹37,000 crore, which feeds into the company’s massive ₹55,000-crore capital expenditure program across India. For the local economy, the implications are profound. State officials estimate that these projects will generate over 15,000 additional jobs, ranging from maintenance specialists for electrochemical equipment to process technicians, providing a significant boost to the socio-economic fabric of the Sambalpur region.

As Chief Minister Majhi pulled the lever to symbolically start the work, he emphasized that Odisha’s industrial policy is geared toward creating value beyond the ore. With Hindalco's move into high-end battery materials and its commitment to renewable energy integration, that vision appears to be transitioning from policy to reality.