In Short:
Hindustan Zinc, led by CEO Arun Misra, plans to decide by late 2023 on expanding into zinc-based battery production as an alternative to lithium batteries. The company is partnering with various organizations for research and development. Demand for zinc batteries in India is strong, particularly for mobility and energy storage. Misra anticipates significant growth in zinc demand, driven by renewable energy and infrastructure.
Hindustan Zinc Eyes Zinc-Based Battery Expansion
In an exciting move for the future of energy storage, **Hindustan Zinc**, a leading player promoted by **Vedanta**, is set to make a significant decision by the end of this year regarding its foray into the world of zinc-based batteries. **Arun Misra**, CEO and whole-time director of the company, hinted that a call on this expansion is likely to be made in **November or December**.
Shifting Focus to Zinc-Based Batteries
As the global energy landscape shifts, **Hindustan Zinc** is exploring zinc-based batteries as a viable alternative to the currently popular lithium batteries. The search for sustainable energy solutions is heating up, and the company is right in the middle of it.
Collaborative Efforts Underway
Hindustan Zinc is rolling up its sleeves and collaborating with various academic institutions and companies. Among their partnerships, they have signed **Memoranda of Understanding (MoUs)** with **JNCASR** to delve into the research and development of zinc alloys, electrolytes, and recycling processes for these new battery types. They’re also teaming up with **Aesir Technologies** to explore exciting nickel-zinc (NiZn) offerings.
But that’s not all! The company has also brought an “**India-based battery maker**” on board for this ambitious project.
The Role of Hindustan Zinc
According to **Misra**, Hindustan Zinc will primarily serve as a raw material supplier while overseas partners handle the technological side of things. The India-based battery maker, meanwhile, will manage investment decisions, including factory setup, location, and production capabilities.
Arun Misra | Photo Credit: cueapi
“Our role is primarily becoming an enabler to bring everyone together,” Misra shared with BusinessLine. He emphasized that if the battery makers require a guarantee of zinc supply for several years until their factories are fully operational, Hindustan Zinc is ready to step up. The company has two options: provide zinc at an affordable price or through a special discount, or even consider investments via equity, depending on the partners’ needs.
Cost Considerations
The exciting part? The cost involved in a zinc battery is expected to be “slightly lesser than lithium,” while the cost per hour is projected to be significantly lower.
Looking Ahead: Demand in India
The demand for zinc-based batteries is set to target various segments in India, especially in mobility and energy storage. Initial adopters are projected to include data storage facilities, solar power plants, and small electric vehicles like two and three-wheelers.
According to Misra, discussions with potential tech partners and the battery maker are progressing positively. “By **November or December**, I believe we’ll come to a conclusion about the factory details, including where, how, and when we will proceed with this project,” he stated enthusiastically.
Bright Prospects for Zinc Demand
As the Chairman of the **International Zinc Association (IZA)**, Misra highlighted that domestic demand for zinc in India remains robust, defying global challenges. Prices have stabilized in the range of **$2700–2800 per tonne**.
“We are forecasting a significant uptick in zinc demand by **2030**, powered by emerging sectors such as renewable energy and battery technology, alongside growth in existing industries like infrastructure, steel, and automotive,” he explained.
On a global scale, zinc demand is anticipated to surge by **43%** in solar power applications and double in the wind energy sector by **2030**. Furthermore, energy storage solutions are expected to experience a remarkable sevenfold increase in the next five years.
In an exciting upcoming event, **India** will host the **Zinc College 2024**, an international initiative organized by the **IZA**, with **Hindustan Zinc** as the proud host.
Misra also noted that if the United States sustains its infrastructure plans beyond the elections, zinc prices could potentially reach the **$3000 per tonne** mark. For now, prices are still attractive and rewarding for producers.
