Hindalco to Invest Rs 21,000 Crore in Odisha Aluminium Expansion

Hindalco Industries has officially launched a Rs 21,000 crore expansion to its aluminium smelting facility at its Aditya Aluminium complex in Sambalpur, Odisha.

This is one of the biggest announcements within the metals industry in India this year. Also announced is the construction of a 1.7 lakh tonne-per-annum Flat Rolled Products (FRP) plant and battery-grade aluminium foil plant, which will cost approximately Rs 4,500 crore to build.

Both initiatives demonstrate Hindalco’s commitment to supporting domestic supply chains for high-quality aluminium production and batteries for electric vehicles (EVs). The expanded capacity of aluminium smelting will provide 3.6 lakh tonne per annum, thus expanding Hindalco’s upstream capabilities. The FRP and battery foil plants are part of a Rs 37,000 crore investment strategy from the Odisha government and will form a key component of Hindalco’s Rs 55,000 crore growth capital expenditures (capex) strategy for its operations throughout India.

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The battery-grade aluminium foil unit is India’s first of its kind and will feed into electric mobility and energy storage ecosystems, supporting up to 100 GWh of lithium-ion cell manufacturing capacity. By sourcing input directly from the FRP complex, Hindalco aims to cut flat-rolled aluminium imports — which currently account for nearly 40 percent of demand — by around half, strengthening domestic manufacturing and reducing reliance on foreign supplies.

Hindalco has integrated operations in Odisha since the early 2000s and these operations have grown to include bauxite mining, alumina production (refining), primary smelting and downstream operations. The company currently employs approximately 23,000 people and the most recent expansion is expected to generate more than 15,000 new indirect and direct jobs. Speaking on the announcement, Hindalco leaders underscored the role of this strategy in advancing India’s self-reliance in critical industrial materials and supporting sectors like packaging, defense, renewable energy and electric mobility.