Hindustan Zinc, Vedanta shares gain up to 6% today; here's why

Shares of Hindustan Zinc Ltd climbed nearly 6 per cent in Friday's trade after the Vedanta-promoted company said the world's second-largest zinc producer has signed an memorandum of understanding (MoU) with US-based AEsir Technologies to develop next-generation zinc battery technologies. 

Under this MoU, Hindustan Zinc will be the preferred supplier of zinc, a key raw material for AEsir Technologies' batteries. Zinc-based batteries provide an alternative to other modern energy storage solutions, delivering higher power at lower costs with minimal maintenance and longer lifespans of upto 20 years. 

This makes them ideal for large-scale energy storage in industrial settings, Hindustan Zinc said in a BSE filing. 

Hindustan Zinc shares jumped 5.60 per cent to Rs 683.95 on BSE. Vedanta shares were up 0.41 per cent at Rs 472.20. Vedanta held 64.92 per cent stake in Hindustan Zinc at the end of March quarter.    

"The MoU is in line with Hindustan Zinc’s efforts towards exploring emerging applications of zinc in the clean energy transition. Zinc batteries are revolutionizing energy storage due to their corrosion resistance, cost-effectiveness, recyclability, stability, and environmental friendliness. They offer broader temperature tolerance, and reliable backup power for extended periods (3-72 hours) compared to other metals. They are built with non-flammable materials, are non-reactive to air and water, and produce no toxic fumes, ensuring greater safety," it said.