Gujarat Fluorochemicals’ subsidiary announces Rs. 6,000 crore investment for EV and ESS battery solutions

Gujarat Fluorochemicals’ subsidiary announces Rs. 6,000 crore investment for EV and ESS battery solutions

Making it the one of the few companies globally to be able to offer a comprehensive range of products for EV/ESS batteries under one roof

  • By ICN Bureau | February 08, 2024

GFCL EV Products Ltd, a 100% subsidiary of Gujarat Fluorochemicals Ltd. (GFL), announced a ground-breaking investment of Rs. 6,000 crores (out of which approx. Rs 650 croe is already invested till Dec. 2023) over the next 4- 5 years. This investment shall enable supply of approx. 200 GWh/annually of Electric Vehicle (EV) and Energy Storage System (ESS) battery solutions.

With an eye on the future, GFCL EV is poised to enter high-demand regions of the US, Europe, and India. Fuelled by the IRA Act, China plus One strategy, and Production-Linked Incentive (PLI) scheme respectively, these markets form the cornerstone of GFL's growth strategy and align seamlessly with the company's vision for sustainable and innovative solutions. The company has already initiated long term tie-ups with renowned global customers, underscoring the confidence in its capabilities and offerings.

GFCL EV aims for an asset turnover ratio of 2 times the CAPEX and EBITDA margin exceeding 25% marking a strong profitability and returns profile over the next few years once the company reaches optimal utilisation levels.

Speaking on the occasion,  Vivek Jain, Chairman of INOXGFL Group, said, "GFL's visionary investment and unwavering commitment to innovation highlight our pivotal role in shaping the future of the EV and ESS battery industry. The significant investment in the EV/ESS battery chemicals supply chain underscores our dedication to driving innovation in the electric mobility sector and Energy Transition. 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 Renewable sector”.

Dr Bir Kapoor, CEO, Gujarat Fluorochemical Ltd, added, "With GFCL EV, we are well-positioned to contribute significantly to the evolving landscape of energy transition driven by EV/ESS. Backed by the rich and long experience of GFL and an integrated value chain GFCL EV will have synergistic and competitive advantages towards developing cutting-edge solutions. As we venture into this newage sector, our aim is not only to provide technological solutions but to be architects of an environmentally conscious future. We envision a world where innovation meets sustainability, and our foray into battery supply chain is a testament to this commitment."

GFCL EV’s current product portfolio includes electrolyte salts LiPF6, additives, electrolyte formulations, cathode active materials such as LFP and cathode binders such as PVDF and PTFE along with a specialized offerings of NaPF6 for sodium ion batteries and proprietary additives for fast charging. On the project front, GFCL EV’s commercial plant for LiPF6 Project has already achieved commercial production and validation process prior to sale has commenced. Also, LFP project is anticipated to be operational by Q3 of CY 24, thereby catering to 30% of Lithium-ion battery (LiB) value, making it the one of the few companies globally to provide such a comprehensive range of products for EV batteries under one roof and solidify its position as an industry frontrunner.

This commissioning and commercial production before 31st March 2024 also makes GFCLEV entitled for concessional 15% Income tax slab.

The global opportunity for the EV battery chain is estimated to reach $300 billion by 2030. In the domestic context, GFL's foray into the EV segment is pivotal, as the industry is expected to grow at a compounded annual growth rate of 30% between 2022 and 2030, with annual sales projected to reach 10 million EV vehicles. This strategic move not only addresses challenges such as the high cost of EV batteries but also mitigates import dependence on key battery raw materials, positioning GFL at the forefront of India's electric mobility revolution and Energy Transition.

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