The investment is expected to supply almost 200 GWh/annually of EV and Energy Storage System (ESS) battery solutions. GFCL EV has plans to enter high-demand regions of the US, Europe, and India in the future. Due to the Inflation Reduction Act (IRA), China Plus one strategy, and the Production-Linked Incentive (PLI) respectively, these three markets are essential for the company’s growth also, as per their statement.
Bir Kapoor, CEO and DMD of Gujarat Fluorochemicals, said, “With GFCL EV, we are well-positioned to contribute significantly to the evolving landscape of energy transition driven by EV/ESS.”
He added, “As we venture into this new-age sector, our aim is not only to provide technological solutions but to be architects of an environmentally conscious future.”
Approximately Rs 650 crore of the investment amount has already been invested till the end of December 2023.
GFCL EV has already established long-term associations with global clients as well. Globally, the EV battery chain market is expected to reach $300 billion by 2030.The company has targeted an “asset turnover ratio of 2 times the CAPEX and EBITDA margin exceeding 25%” over the next few years.
Vivek Jain, chairman of INOXGFL group, said, “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 the Renewables sector”.
In the interim budget of 2024, Finance Minister Nirmala Sitharaman announced that the government “will expand and strengthen the e-vehicle ecosystem by supporting manufacturing and charging infrastructure”. An outlay of Rs 2671 crore was allocated for the Faster Adoption and Manufacturing of Electric (& Hybrid) Vehicles in India (FAME) for FY25.
The EV industry is projected to grow at a CAGR of around 30% between 2022 and 2030, while the annual sales are expected to reach 10 million EV vehicles. Through its plans, GFCL EV will be addressing the import dependency of the country for the raw materials of batteries and will also entitle the company to a concessional income tax rate regime.
GFCL EV’s range of products for EV batteries include electrolyte salts LiPF6, additives, electrolyte formulations, cathode active materials such as LFP and cathode binders such as PVDF and PTFE, along with specialized offerings of NaPF6 for sodium ion batteries.
Its commercial plant for LiPF6 project has completed the commercial production and has started the validation process before sale.
The LFP project, which is supposed to cater to 30% of Lithium-ion battery (LiB) value, according to the company’s statement, is expected to be functioning by the third quarter of CY2024.
(You can now subscribe to our Economic Times WhatsApp channel)
