GFCL EV to invest INR 6000 Crore in LiPF6 project for battery supply chain

GFCL EV Products Ltd, a subsidiary of Gujarat Fluorochemicals Ltd. (GFL), has announced an investment of INR 6000 Crores (out of which approx. INR 650 Cr is already invested till 31.12.2023) over the next 4-5 years to commence its LiPF6 Project, catering to the global Electric Vehicle (EV) and Energy Storage System (ESS) battery supply chain. This investment aims to enable the supply of approximately 200 GWh annually of EV and ESS battery solutions.

LiPF₆ is a popular salt for making the electrolyte of Lithium-ion batteries.

GFCL EV’s current product portfolio includes electrolyte salts LiPF6, additives, electrolyte formulations, cathode active materials like LFP, cathode binders such as PVDF and PTFE, also offerings of NaPF6 for sodium-ion batteries and proprietary additives for fast charging.

On the project front, GFCL EV’s commercial plant for the LiPF6 Project has started commercial production, with the validation process prior to the sale underway.

Additionally, the LFP project is expected to be operational by Q3 of CY 24, catering to 30% of the Lithium-ion battery (LiB) value. The commissioning and commercial production before March 31st, 2024, also entitle GFCLEV to a concessional 15% income tax slab.

GFCL EV plans to enter high-demand regions such as the US, Europe, and India, leveraging market incentives and strategic initiatives. The company has initiated long-term tie-ups with an aim for an asset turnover ratio of 2 times the CAPEX and an EBITDA margin exceeding 25% in the coming years. GFCL EV intends to overcome challenges such as high battery costs and import dependence on key battery raw materials.

Speaking on the occasion, Mr. Vivek Jain, Chairman of INOXGFL Group, said, “GFL’s visionary investment and unwavering commitment to innovation highlight our pivotal role in shaping the future of the EV and ESS battery industry. The significant investment in the EV/ESS battery chemicals supply chain underscores our dedication to driving innovation in the electric mobility sector and Energy Transition. As leaders, our objective extends beyond mere market prominence; we aspire to be pioneers in sculpting a cleaner and environmentally sustainable tomorrow which resonates with our Ethos of being a Green Group with expanding businesses in Renewable sector”.

Dr Bir Kapoor, CEO of Gujarat Fluorochemical Ltd, added, “With GFCL EV, we are well-positioned to contribute significantly to the evolving landscape of energy transition driven by EV/ESS. Backed by the rich and long experience of GFL and an integrated value chain GFCL EV will have synergistic and competitive advantages towards developing cutting-edge solutions. As we venture into this newage sector, our aim is not only to provide technological solutions but to be architects of an environmentally conscious future. We envision a world where innovation meets sustainability, and our foray into battery supply chain is a testament to this commitment.”

In the global context, the opportunity for the EV battery chain is estimated to reach USD 300 billion by 2030, while domestically, the EV industry is expected to grow at a compounded annual growth rate of 30% between 2022 and 2030, with annual sales projected to reach 10 million EV.

Also read: How major OEMs are attempting to secure the EV battery supply chain