70 per cent returns in just 6 months: This Indian iron and steel company has made battery-grade aluminum foil for lithium-ion cell production!

The stock is up by 70 per cent in just 6 months whereas BSE Sensex Index is up by 14.77 per cent.

Shyam Metalics and Energy Limited (SMEL), a leading integrated metal producer headquartered in Kolkata, officially announces its entry into the energy storage sector with battery-grade Aluminum foil, a critical component in Lithium-ion cells. The company is geared towards becoming one of the first large-scale domestic contributors to the government’s AatmaNirbhar Bharat initiative in the battery energy storage sector.

Shyam Metalics, a major producer and exporter of Aluminum foil for various industrial applications with an annual production capacity of 20,000 tons will allow India to corner a share of raw materials in the global Lithium-ion cell market, which is expected to reach 6500GWh/year capacity by 2030.

The has started making aluminum foil for lithium-ion batteries, which are used in electric vehicles and energy storage systems. This is a significant development for India, as it will reduce the need to import this important material.

Shyam Metalics' battery aluminum foil has been tested and validated by third-party laboratories, and the company has the necessary equipment to manufacture aluminum foils as thin as 6 microns, which will be suitable for future requirements.

India needs over 903 GWh of energy storage system capacity to decarbonize its mobility and power sectors, and Li-ion batteries will have a very big market share in this. India spent USD 1.8 billion to import 5,486.18 kWh lithium-ion batteries during the April-November 2022 period, indicating a growth in imports consequently to rising demand for electric vehicles and green energy solutions.

As India gets ready to set up Li-ion cell Giga-factories as part of the government's production-linked incentive (PLI) scheme, Shyam Metalics' foray into the raw material space for Li-ion cell manufacturing strengthens the indigenization drive in the strategically important energy storage solutions sector and provides the company with a future-relevant business opportunity.

On Monday, shares of SMEL zoomed 1.58 per cent to 441.70 per share from its previous closing of Rs 434.85. The company has a market cap of over 11,000 crore and reported positive numbers in its Quarterly Results and annual results.

The stock is up by 70 per cent in just 6 months whereas BSE Sensex Index is up by 14.77 per cent. Investors should keep an eye on this Mid-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.