Himadri Speciality Chemical, a global speciality chemical conglomerate is bringing breakthrough innovation to the Global LiB Industry by announcing India's first-ever commercial plant for Lithium Iron Phosphate (LFP) Cathode Active Material.

The company has a vision to produce 200,000 MTPA of Lithium Iron Phosphate (LFP) Cathode Active Material, catering to 100 GWh of Li-ion Battery, 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 Rs. 1,125 crores 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 ~4X 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.

Commenting on the breakthrough innovation, 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.

"Himadri has always believed in the innovation which is sustainable. We have therefore over the years made significant investments in Research & Development. Our R&D efforts are focussed on all the three areas - Product, Process and Technological Innovation. These results are well manifested and reflected in the Company's strong product innovation pipeline. Our in-house technology for cathode materials gives us significant advantages in terms of continuous development, product offerings and cost competitiveness resulting in higher returns on capital employed.

"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.

"Himadri Speciality Chemical Ltd has made significant investment of resources over the years to be able to achieve this breakthrough. Our globally spread R&D team and our integrated business model along with the hard work of each and every member at Himadri has led us to become a leading player in all our business segments.

We remain committed to delivering high-quality, niche, and specialized chemistry to diverse industries worldwide. This significant achievement is a pivotal moment for us as we continue to innovate and contribute to a greener and more sustainable future."