Vedanta-backed Hindustan Zinc, India’s leading zinc producer, is considering expanding into the production of zinc-based or zinc-nickel batteries. According to CEO and Whole-Time Director Arun Misra, a decision on this move is expected by the end of this year, around November or December. Zinc-based batteries are being explored as a potential alternative to lithium-ion batteries, which currently dominate the global energy transition market.
Hindustan Zinc is already working with academic institutions and companies to advance zinc battery technology. The company has signed MoUs with JNCASR for research and development of zinc alloys, electrolytes, and recycling processes, and with Aesir Technologies to develop nickel-zinc (NiZn) battery solutions. Additionally, an Indian battery manufacturer has been brought into the project.
Misra explained that Hindustan Zinc’s primary role will be as a supplier of raw materials, while overseas partners focus on technology development. The India-based battery manufacturer will handle aspects such as investment, factory setup, production capacity, and location.
Hindustan Zinc may offer either a guarantee of zinc supply for a specified number of years or provide zinc at a discounted rate. Alternatively, the company might make an equity investment depending on negotiations with the involved parties.
The cost of zinc batteries is expected to be slightly lower than lithium ones, with a much lower cost per hour. In India, these batteries could be used in sectors like mobility, energy storage, data centers, solar power plants, and small electric vehicles (such as two- and three-wheelers). Misra noted that discussions with technology partners and battery manufacturers are progressing well, and decisions regarding the factory and other project details are anticipated by November or December.
India’s demand for zinc remains strong, defying global market trends. Misra, who also chairs the International Zinc Association (IZA), highlighted that domestic zinc prices are steady, hovering between $2,700 and $2,800 per tonne.
He anticipates a significant rise in zinc demand in India by 2030, fueled by the growth of sectors like renewable energy, battery technology, infrastructure, steel, and automotive. Globally, zinc demand is projected to grow by 43% in solar power applications and double in the wind energy sector by 2030, with energy storage solutions expected to increase sevenfold over the next five years.
Hindustan Zinc is also hosting Zinc College 2024, an international event organized by the IZA. Misra added that if the U.S. maintains its infrastructure push post-elections, zinc prices could climb towards the $3,000 per tonne mark. For now, the market remains remunerative.
