Shyam Metalics and Energy Limited announced its debut into battery-grade aluminium foil, a vital component in lithium-ion cells, on Monday, anticipating rising demand from Indian enterprises venturing into new-age batteries.

With an annual production capacity of 20,000 tonnes, the company is a producer and exporter of aluminium foil for various industrial purposes.

The company officials, however, did not elaborate on the capacity that would be catered to the battery segment or mention any capital expenditure for foraying into lithium-ion cell grade aluminium foil.

Shyam Metalics in a statement said for the production of 1GWh (Gigawatt-hour) of LFP (Lithium Iron Phosphate) cells, which power a wide variety of electric vehicles and energy storage systems, 350 tons of high purity and uniform-thickness aluminum foil is required that acts as a positive (cathode) current collector.

The demand for aluminum foil doubles for sodium-ion batteries, where both positive and negative current collectors are expected to use aluminum foils.