Himadri Specialty Chemical Invests Rs 4,800 Crore in EV Battery Components

7 Dec 2023 , 11:05 AM

Himadri Specialty Chemical will invest Rs 4,800 crore to enter the manufacturing of Lithium-ion battery components, focusing on Lithium Iron Phosphate (LFP) Cathode Active Material for electric vehicle (EV) batteries.

The upcoming facility in Odisha positions Himadri as the first Indian entity in this sector, with the project primarily funded from internal accruals.

Anurag Choudhary, CMD & CEO of Himadri, expects the company to be debt-free and cash positive by March. The product is the result of a 15-year effort by the company’s 150-member R&D team.

Phase I of the project, costing Rs 1,125 crore, will be 40,000 MTPA and operational in 27 to 36 months. The vision is to produce 200,000 MTPA LFP Cathode Active Material over the next five to six years.

Recognizing the crucial role of cathode materials, constituting 50-55% of cell cost, Himadri aims to tap into the growing demand, with global Cathode Material demand expected to reach 9.4 million tonnes annually by 2030.

The company plans to sell these materials to original equipment manufacturers (OEMs) and battery cell manufacturers, with an emphasis on international demand.

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