Hindustan Zinc, JNCASR develop zinc-ion battery prototype; stock rises 3%

Shares of Hindustan Zinc rose on Monday as the company developed, in collaboration with the JNCASR, stable and reliable zinc-ion battery pouch cell prototypes for large-scale renewable energy storage

Hindustan Zinc share price today

Hindustan Zinc share price rose 2.6 per cent to the day's high of ₹625 per share on the National Stock Exchange (NSE) on Monday as the company developed zinc-ion battery pouch cell prototypes, in collaboration with the JNCACR, for large-scale renewable energy storage.

 

As of 12:36 PM, Hindustan Zinc share price was trading 2.2 per cent higher at ₹622.60 per share on NSE. Around 0.4 million shares have, so far, changed hands on the exchange. 

In the last 12 months, Hindustan Zinc share price has increased 41.46 per cent, as compared to a 9.7 per cent advance in the Nifty 50 index.

 

Why did Hindustan Zinc share price rise today?

Hindustan Zinc and JNCASR have developed  zinc-ion battery pouch cell prototypes to address the key issue of achieving longer life cycles and higher energy density while optimising the electrode and electrolyte materials, according to an exchange filing.

 

The new electrolyte formulations enhance stability and extend cycle life. When tested against real-world solar energy profiles, the prototypes proved highly effective, confirming their potential for renewable energy storage, Hindustan Zinc said in the exchange filing. The advancements demonstrate the potential of zinc-ion batteries to support renewable energy storage safely and efficiently. 

 

"While zinc-ion batteries currently have lower performance metrics than lithium-ion batteries, they offer distinct advantages, including exceptional safety, lower material costs, and non-flammable aqueous electrolytes, key attributes for large-scale and long-duration deployment," said Arun Misra, CEO and whole-time director.

 

The widespread availability and cost-effectiveness of zinc have positioned zinc-ion batteries as a leading solution for stationary energy storage systems, according to the exchange filing.  Meanwhile, silver prices resumed their uptrend on Monday, climbing 5.6 per cent on the MCX in the intraday trade. At the time of writing this report, Silver futures for March 5 delivery on the MCX were trading 4 per cent higher at ₹2,60,340 per kg. HZL is an Indian integrated mining and resources producer of zinc, lead, silver and cadmium. 

 

Analyst view

Hindustan Zinc has experienced significant price swings recently, tracking the high volatility in the silver prices. The stock successfully tested its 6-month exponential moving average (EMA) support near the ₹540 level. Currently, it is oscillating within a broadening formation, identifying a key support base between ₹540 and ₹590 and immediate resistance at ₹645, said Vipin Kumar, assistant vice president, Globe Capital Market.

 

Globe Capital Market recommends a buy on dips strategy within the support zone for medium-term upside up to ₹645. A decisive break above ₹645 could clear the path for further upside toward ₹680, Kumar said.

 

While Hindustan Zinc has benefited from a broader re-rating in PSU (public-sector undertakings) and metals names, the underlying fundamentals have not seen a commensurate improvement, said Harshal Dasani, business head, INVasset PMS.

 

The market may continue to reward cash-generating companies in the near term, but sustained valuation support will depend on whether capital is retained for reinvestment rather than being consistently moved out of the company, he said.      

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