Hindalco announces $2.3 billion aluminium smelter expansion in India

ODISHA, INDIA — Hindalco Industries has unveiled plans to invest about ₹210 billion ($2.3 billion) to expand its aluminium smelter capacity in the eastern state of Odisha, part of a broader strategy to scale up domestic production amid rising demand from electric vehicles, renewable energy and advanced manufacturing sectors.

The planned expansion underscores India’s push to strengthen local manufacturing of strategic materials — particularly metals used in lightweight mobility, energy storage and other clean-technology applications.

Alongside the smelter expansion, the company has also commissioned a ₹45 billion plant to produce flat rolled products and battery-grade aluminium foil, key inputs for lithium-ion batteries used in electric vehicles and energy storage systems.

Reducing import reliance, boosting supply chains

Hindalco said the fresh investments are designed to sharply reduce India’s reliance on imported aluminium products. Currently, a substantial portion of flat rolled aluminium used domestically is brought in from overseas markets. The new capacity is expected to significantly cut that dependency and align with the government’s manufacturing agenda.

Aluminium products are critical raw materials for battery packs, EV structures and other energy-efficient components, making the expansion strategically important as India scales up its clean energy and mobility ecosystems.

Jobs and long-term capital spending

The smelter expansion and new manufacturing facility are expected to generate more than 15,000 jobs, providing a significant boost to industrial employment around Hindalco’s existing operations in eastern India.

The projects form part of Hindalco’s broader ₹550 billion capital expenditure plan across India, reflecting the company’s long-term confidence in domestic demand and infrastructure growth prospects.

For investors, the move signals Hindalco’s continued strategic shift toward value-added aluminium products, which typically command higher margins and more stable demand than commodity-grade metal.

Why This Matters

Aluminium is a strategic industrial metal vital to the energy transition, lightweight mobility and clean technology sectors. Hindalco’s expansion in Odisha — India’s aluminium heartland — strengthens the country’s position in critical supply chains, supports job creation and reduces dependence on imports.

As global demand for EVs, renewables and advanced manufacturing accelerates, local capacity additions like this could help make India a more competitive producer of high-performance aluminium products.

Summary

• Hindalco will invest about ₹210 billion ($2.3 billion) to expand its aluminium smelter in Odisha.
• The company also commissioned a ₹45 billion flat rolled products and battery-grade aluminium foil plant.
• The investments aim to cut reliance on aluminium imports and support EV, energy storage and advanced manufacturing supply chains.
• The projects are expected to create more than 15,000 jobs and are part of a ₹550 billion capital expenditure program.

FAQs

Q1. How much is Hindalco investing in the expansion?

Hindalco plans to invest approximately ₹210 billion ($2.3 billion) to expand its aluminium smelter in Odisha.

Q2. What additional facilities has Hindalco commissioned?

The company has also started a ₹45 billion facility to produce flat rolled products and battery-grade aluminium foil, essential for lithium-ion batteries.

Q3. Why is aluminium important for EVs and energy storage?

Aluminium is lightweight, strong and highly recyclable, making it valuable in EV structures, battery components and energy storage systems.

Q4. How will the expansion affect imports?

Hindalco expects the new capacity to significantly reduce India’s dependence on imported flat rolled aluminium and similar products.

Q5. How many jobs will the new investments create?

The projects are expected to generate more than 15,000 jobs in eastern India.

Q6. Is this part of a larger investment program?

Yes. The expansion is included in Hindalco’s broader ₹550 billion capital expenditure plan across India.