Himadri Speciality Chemical to set up a plant for LFP cathode active material in Odisha

Himadri Speciality Chemical, a global speciality chemical conglomerate, announced India’s first commercial plant for Lithium Iron Phosphate (LFP) Cathode Active Material.

– The company plans to produce 200,000 MTPA of LFP Cathode Active Material, catering to 100 GWh of Li-ion Battery, in phases over the next 5-6 years.

– Phase I of the capacity expansion will be of 40,000 MTPA at an estimated cost of INR 1,125 Crores. The company aims to make the plant operational in 27 to 36 months. The capex will be funded largely through internal accruals and balance from debt. At full utilization of 40,000 MT, the company expects to generate a revenue of ~4X the capex with a very strong profitability and returns profile.

Cathode materials are critical components required in the production of Lithium-ion cells that constitute 50-55% of the cell cost, with LFP being one of the predominant materials used in manufacturing LiB Cells. According to a press release, the global demand for LiB is expected to grow by about 27% annually to reach about 4700 GWh by 2030, and Cathode Material, which is a critical component of the LiB value chain, is expected to increase to 9.4 million tonnes by 2030 to meet the global production of LiB cells. Himadri’s plant in Odisha will cater to global and domestic demand.

Mr Anurag Choudhary, CMD & CEO of Himadri Speciality Chemical Ltd, said, “I am immensely pleased to announce the momentous achievement of Himadri Speciality Chemical to pioneering Innovation and Sustainable Growth in Cathode Material Landscape. This is in line with our sustainability goals to contribute to the Global & Domestic Carbon-Neutral Revolution.” Our in-house technology for cathode materials gives us significant advantages in continuous development, product offerings, and cost competitiveness, resulting in higher returns on capital employed, according to the official statement.