Himadri Speciality Chemical has announced India’s first-ever commercial plant for Lithium Iron Phosphate (LFP) Cathode Active Material with a target to produce 200,000 MTPA of LFP 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 ₹1,125 crore and to be operational in 27 to 36 months at Odisha. 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 approximately 4-fold 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 the manufacturing of LiB Cells. Cathode Material demand is expected to increase to 9.4 million tonnes annually by 2030 to meet the required global production of LiB cells.
Himadri is present in critical part of the high growth LiB value chain at the right time when the industry is at the inflection point to achieve carbon free revolution.
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 Global & Domestic Carbon-Neutral Revolution.
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 for the LiB value chain is expected to increase to 9.4 million tonnes by 2030 to meet the required global production of LiB cells.
Our commercial plant at Odisha will cater to the global as well as domestic demand thereby helping in Government of India’s vision of Atma-Nirbhar Bharat, the company said in a statement.
