This S&P BSE 500 stock jumped 3% on Monday after it said in a press release that it is entering the Lithium Ion Storage Cell Industry. The stock has a market capitalization of Rs. 11,267 crore and saw volumes that were 2x the previous session and last week’s average.

The stock closed at Rs. 441.70, up 2% from previous close. Shyam Metalics received a target of Rs. 690 from ICICI in August, indicating an upside of 56% from current price

With battery-grade aluminum foil, a crucial component in lithium-ion cells, Shyam Metalics & Energy Ltd (“Shyam Metalics”), a leading integrated metal producer with its headquarters in Kolkata, formally announced its entry into the energy storage sector. In the battery energy storage industry, the company is working to become one of the first significant domestic contributors to the government’s Atma Nirbhar Bharat initiative.

With an annual production capacity of 20,000 tons, Shyam Metalics is a producer and exporter of aluminum foil for various industrial applications. This will enable India to secure a significant raw material market share in the lithium-ion cell market, which is anticipated to reach 6500GWh/year capacity by 2030. 

350 tons of high purity, uniform-thickness aluminum foil are needed to produce 1GWh (Gigawatt-hour) of LFP (Lithium Iron Phosphate) cells, which power a variety of electric vehicles and energy storage systems. This aluminum foil serves as the positive (cathode) current collector. The demand for sodium-ion batteries doubles because aluminum foil is anticipated to be used as both the positive and negative current collectors. 

Third-party laboratories have tested and validated the customized battery aluminum foil from Shyam Metalics, with thicknesses ranging from 12-micron to 20-micron.

Additionally, the company has the required cutting-edge German machinery that can produce aluminum foils as thin as 6-micron thickness, which will be suitable for future requirements where the foil thickness is anticipated to decrease with evolving Lithium-ion cell technologies for an improved value of cell gravimetric energy density (amount of energy contained per unit weight of the cell expressed in terms of Watt-hour/Kilogram). 

Written by Sandeep R


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