By: ICN Bureau
Last updated : October 23, 2024 4:58 pm
The funds will be utilized for the capex requirements of the company as it scales up to capitalize on the large-scale global opportunities in EV / ESS space
Gujarat Fluorochemicals Limited (GFL), India’s leading fluorochemicals company, announced today that the board of its subsidiary, GFCL EV Products Ltd. (GFCL EV), has approved the raise of Rs 1,000 crore at an equity valuation of ~ Rs 25,000 crores.
The promoters of the INOXGFL Group led the round in the fund raise along with several marquee investors, including the family offices of some of the largest business groups in India. The funds will be utilized for the capex requirements of the company as it scales up to capitalize on the large-scale global opportunities in the electric vehicles (EV) / energy storage systems (ESS) space.
GFCL EV is well positioned to capture a sizeable value share in the global battery materials industry and become a preferred partner to EV/ESS battery/cell manufacturers in their quest to secure a sustainable and reliable supply chain. GFCL EV has fully integrated manufacturing capabilities with backward integration into AHF, LiF and captive fluorspar. Its current product portfolio, catering to both EV & ESS ecosystem, includes: Battery chemicals – electrolyte salts LiPF6, electrolyte formulations, additives for enhanced performance, Cathode active materials (LFP) and Binders (both PVDF and PTFE).
GFCL EV, with its diversified battery materials offerings and strong credentials, aims to capitalize on the opportunities arising on the back of the Inflation Reduction Act (IRA) in the US and the strategic diversification globally of supply chains away from a single origin country.
The global opportunity for the EV battery chain is estimated to reach $300 billion by 2030. The projected increase in the global lithium battery demand from ~ 1100 GWh to 5000-6000 GWh by 2030 will lead to significant demand for the battery materials which GFCL EV caters to.
Devansh Jain, Executive Director, INOXGFL Group, said, “At INOXGFL Group, we are playing a significant role in the entire energy transition space, be it EV, green hydrogen, wind or the solar ecosystem. We are very excited with the opportunities in the battery materials space and its role as a catalyst driving the EV / ESS growth story. GFCL EV is on the path to deliver exponential growth going ahead, as it scales up and becomes the preferred supplier of some of the largest global OEMs in the auto industry.”
Dr. Bir Kapoor, DMD & CEO, GFL, remarked, “We are delighted to have the backing of some of the largest and most esteemed investors in the fund raise for GFCL EV. We see an enormous opportunity for the offerings of GFCL EV as the global EV/ESS market surges. This is a multi-decadal opportunity and being the early movers in this space having built capabilities over the last few years, we are confident of a massive growth journey ahead. GFCL EV has already started the sampling and validation process and expects to commence commercial sales by Q4 FY25.”