In a strategic move towards diversification, India’s chemical companies are now directing their efforts towards the Electric Vehicle (EV) battery value chain, specifically emphasizing Lithium Ion Batteries. These batteries play a crucial role in the realm of electric vehicles, renewable energy storage, and various electronic applications.
Navigating the Lithium Ion Battery Investment Landscape
To achieve a battery capacity of 100 Giga Watt Hour (GWh) by 2030, a substantial investment ranging between ₹30,000 crore to ₹35,000 crore is anticipated. This investment is earmarked for crucial components such as Cathode, Anode, Electrolytes, and other essential elements. A detailed breakdown provided by the Nirmal Bang report includes:
- Cathode (35%)
- Container (21.9%)
- Anode (9.9%)
- Copper (3.8%)
Key Players in the EV Battery Value Chain
Aether Industries
- Recently announced a strategic collaboration with a global Lithium Ion battery producer.
- Venturing into the realm of electrolyte additives.
Himadri Speciality Chemicals
- In the pipeline to establish a manufacturing facility dedicated to Lithium Ion Battery components.
- Projected investment stands at ₹4,800 crore spread over 5-6 years.
Ami Organics
- Formally signed a non-binding MoU with a global Electrolyte manufacturer.
- In the process of finalizing an MoU with the Gujarat government for a specialized manufacturing facility (₹300 crore).
Neogen Chemicals
- Secured an agreement with MU Ionic Solutions Corporate, Japan, for licensing electrolyte manufacturing technology.
- Commercial production for 30,000 MT per annum capacity slated to commence in 2025.
- The project entails a capital expenditure of ₹450 crore, projecting revenue potential of ₹1,000 crore to ₹1,200 crore by FY 2027.
Gujarat Fluorochemicals
- Outlining plans to manufacture batteries for Electric Vehicles, leveraging their expertise in fluorine chemistry.
- Envisioning an investment of nearly $1 billion, spanning battery chemicals and green hydrogen through their subsidiary GCFL EV Products.
Tata Chemicals
- Integral part of the Tata Group’s ambitious $1.6 billion EV battery plant initiative.
- While specifics on EV chemicals are not explicitly stated, there are indications of exploring opportunities, given the relationship between Lithium Carbonate and Soda Ash.
Navigating the Path Forward
As India’s chemical companies embark on the EV battery value chain journey, their aim is to tap into the surging demand for electric vehicles and renewable energy solutions, thereby contributing significantly to the nation’s industrial diversification.
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