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Himadri Speciality Chemical invests Rs 4,800 cr in Li-ion battery component manufacturing
Industry News- Dec 07,23
The company aims to produce 200,000 tonnes of lithium iron phosphate (LFP) cathode active material, contributing to the creation of 100 gigawatt hours (GWh) of Li-ion batteries in phases over the specified timeframe.
Himadri Speciality Chemical announced its plans to invest Rs 4,800 crore over the next five to six years in the establishment of a manufacturing facility for the production of components essential for lithium-ion (Li-ion) batteries. The company aims to produce 200,000 tonnes of lithium iron phosphate (LFP) cathode active material, contributing to the creation of 100 gigawatt hours (GWh) of Li-ion batteries in phases over the specified timeframe.
In the initial phase, the facility, located in Odisha, will possess a capacity of 40,000 tonnes, with an estimated cost of Rs 1,125 crore and an anticipated operational commencement within 27-36 months. The capital expenditure will be primarily sourced from internal accruals, supplemented by debt financing.
Himadri anticipates robust revenue generation, four times the initial investment, upon reaching full utilisation of the 40,000-tonne capacity, ensuring a strong profitability and returns profile. The company aims to contribute to the indigenisation of lithium-ion battery raw materials, serving both global and Indian markets for electric vehicles and energy storage systems, while reducing dependence on fossil fuels.
Highlighting the significance of cathode materials, which constitute 50-55% of the cell cost in lithium-ion cells, Himadri underscores the critical role of LFP in Li-ion battery cell production.
Anurag Choudhary, Chairman and CEO of Himadri Speciality Chemical, emphasised that the in-house developed technology has been in the works for the past 15 years. He stated that the global demand for Li-ion batteries is expected to grow at an annual rate of approximately 27%, reaching 4700 GWh by 2030.
Choudhary added that the cathode material demand is set to increase to 9.4 million tonnes by 2030 to meet global production requirements. The Odisha plant is positioned to cater to both global and domestic demand.
Discussing the government's Production-Linked Incentive (PLI) scheme for advanced chemistry cell battery storage, Choudhary stressed the need for companies to establish cell manufacturing bases in India by producing components domestically. Himadri aims to play a pivotal role in the lithium-ion battery component sector, encompassing cathode and anode manufacturing.
Earlier in the year, Himadri invested A$10.32 million in cash in Sicona Battery Technologies Pty Ltd, acquiring a 12.79% stake. Sicona, based in Sydney, specialises in technology used in the anodes of Li-ion batteries, contributing to mobility and renewable energy storage.
Source: Business Standard
Himadri Speciality Chemical
Odisha plant
Anurag Choudhary
Sicona Battery Technologies
Anurag Choudhary
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