As the world accelerates toward electrification, digitalization, and sustainability, the spotlight is now firmly on advanced chemistries that are enabling the next generation of batteries, semiconductors, and clean technologies. From lithium-ion breakthroughs and solid-state battery innovations to ultra-pure resins used in chip fabrication, material science is becoming the new engine of competitive advantage.

Leading experts discussed the latest trends in Indian context at the third session of 5th edition of the NextGen Chemicals and Petrochemicals Summit 2025 themed ‘Preparing for the future' in Mumbai  on June 18-19, 2025.

The session titled ‘Advancements in Battery Materials, Semiconductor, and New Chemistries’ was moderated by Sehul Bhatt, Director – Research, CRISIL Intelligence who highlighted that while private sector capex is picking up, it remains concentrated in select areas. “Private capital expenditure is happening, but it’s not yet broad-based. Traditionally, capex was led by sectors like steel, coal, gas, pharma, and textiles. However, in the coming years, the focus is shifting toward the three Es — Electric Vehicles, Electronics, and Energy Transition — which are emerging as the new engines of investment.”

Dr Mayukh G. Warawdekar, Vice President, Fine Organic Industries Ltd cautioned about the challenges in scaling electric vehicles (EVs) in India.

“I view the growth of EVs with a degree of concern. The metals essential for EV production are neither abundant nor widely distributed, they are sourced from a handful of countries and don’t rank among the top three globally in terms of production volumes. With growing trade tensions, including U.S. tariff barriers and China’s export restrictions, securing a reliable supply chain will be increasingly difficult. Various reports project India’s EV sector to grow at 30–40%, yet the demand for critical metals is estimated to be six times higher than our current domestic availability. While we often hear about India’s potential in rare earth reserves, tangible progress remains limited. Moreover, refining these metals depends heavily on mining, a process known for its environmental toxicity and limited long-term viability. If we are serious about building a sustainable EV ecosystem, India’s Production Linked Incentive (PLI) schemes must extend further upstream to include backward integration. This transition will not only require substantial investment in raw material processing but also a strong pipeline of skilled talent to support this emerging value chain.”

Rajiv Rao, Business Head – EVI, QFCL EV Products Ltd. outlined the core considerations in manufacturing chemicals for EV batteries and the challenges facing Indian producers.

“When it comes to producing chemicals for lithium-ion batteries, there are typically three critical cost components: raw materials, processing, and purity. The primary raw materials include minerals such as lithium, nickel, cobalt, manganese, and graphite. Depending on the cell chemistry, these metals can account for 50–65% of the total raw material cost, making sourcing a significant cost driver for lithium-ion batteries. The second factor is processing cost. For instance, producing lithium salts involves extremely low temperatures, sometimes as low as –500°C, leading to high energy consumption. Similarly, manufacturing cathode active materials requires high-temperature sintering, which adds further to power and operational costs. The third major consideration is purity. While conventional industry standards may allow impurities at 200 ppm, battery-grade materials demand precision in the range of 200–300 parts per billion, requiring highly controlled and extensive unit operations. In the Indian context, we’re still in the early stages of scaling up. The lack of economies of scale naturally drives costs higher. While domestic demand is focused on electrification and mobility, we must also think beyond, aiming to serve global markets to justify larger-scale operations and improve cost efficiencies.”

Kalpesh Pandya, Vice President – Technology & Integration, Epsilon Advanced Materials Pvt. Ltd. highlighted the unique complexities of scaling battery chemicals compared to conventional chemical processes:

“Like most new chemical processes, the development of battery materials follows a typical path, starting in the lab, moving to pilot scale, and finally transitioning to commercial production. However, unlike commodity chemicals where achieving the required purity is usually sufficient for market entry, battery materials demand much more. In this space, physical and electrochemical properties are just as critical as chemical purity. That’s where customer validation plays a central role. For commodity products, once specifications are met, the product is market-ready. But for battery materials, customer qualification of electrochemical performance is a mandatory step even before the process is finalized. This is a key differentiator between traditional chemicals and battery-grade materials. Another challenge in India is the lack of domestic manufacturing equipment for battery material production. Most of it is imported from China, adding significantly to capital costs and timelines. Lastly, sustainability must be central to the commercialization strategy. The entire premise of EVs is to offer a cleaner alternative to fossil fuels. Therefore, battery material manufacturing should follow low-emission, environmentally responsible practices. Building a localized, sustainable supply chain is not just desirable, it’s essential for long-term success.”

Hemant Waghela, Country Manager – Adsorbents India, Clariant India Pvt. Ltd.emphasized the need for forward-thinking strategies in semiconductor and battery chemical industries:

“In today’s world, we are surrounded by screens, and that’s where the semiconductor opportunity lies. India is already a large and growing market, well-positioned for future expansion. However, when it comes to battery chemicals, our R&D efforts need sharper focus to fully tap into the sector’s vast potential. New technologies are emerging, but we still have a way to go before reaching the scale and sophistication we aspire to. One major challenge is the reliance on patented instruments, which limits accessibility and flexibility within the industry. Another is the shortage of skilled talent, though the government is making efforts to address this gap. Beyond knowledge and technology, we need to build a strong cleanroom culture, especially as precision and purity standards rise. The global semiconductor supply chain crisis during the COVID-19 pandemic brought attention to just how critical supply chain resilience is for this sector. Looking ahead, sustainability will become a major concern, not just in production but across the entire value chain. For instance, packaging may seem minor today, but it could pose significant environmental challenges in the future. The industry must start addressing these issues now, with a long-term, future-ready mindset.”

Ambuj Mishra, AVP & Business Head – Advanced Materials, Navin Fluorine International Ltd. shared a forward-looking perspective on the growing role of specialty chemicals in the semiconductor value chain.

“The global semiconductor industry is currently valued at around US$600 billion and is expected to grow to US$1 trillion, largely fueled by the rapid expansion of artificial intelligence (AI) applications. This growth will accelerate by 2032–33, followed by quantum computing, which could propel the industry to US$5 trillion by 2045. AI chips are becoming increasingly complex, with miniaturization moving from 50 nanometers to just 2 nanometers. As chip architecture advances, more process steps are introduced, raising the demand for precision and performance. The result is not only higher chip consumption per device but also a surge in the number of specialty chemicals and gases required during fabrication, often more than 100 per fab. This presents a significant opportunity for the specialty chemicals industry. However, it also introduces new challenges. As chip sizes shrink, controlling impurities becomes far more critical. Moreover, specifications vary greatly depending on the type of chip — logic vs. memory, and production volumes. Each customer brings unique quality benchmarks. To meet these expectations, manufacturers must ensure consistency, traceability, and repeatability, which demand advanced chemical capabilities, sophisticated analytical tools, cleanroom environments, and most importantly, a quality-driven mindset. Several Indian companies like Tata Chemicals are already making inroads, and global players are showing strong interest in partnering. But to truly seize this opportunity, industry, government, and research institutions must work together to create the right ecosystem, one that supports innovation, scale, and global competitiveness.”

The 5th edition of NextGen Chemicals and Petrochemicals Summit 2025 themed ‘Preparing for the future' witnessed massive attendance by leading industry experts and stakeholders from pan India. The 12 sessions at the two-day event were attended by a total of 85 speakers and more than 500 delegates. 

The Country Partner of the event was Flanders Investment & Trade. The State Partner was Andhra Pradesh Economic Development Board (EDB). The Principal Partner was DCM Shriram Chemicals. The Gold Partners included Revvity Signals, Ingenero, Tubacex, GloGreen, BTG (A Voith company), Gujarat Fluorochemicals, Excel Industries, Epsilon Carbon, Aquapharm, HPCL, BPCL, and WoodField.

The Associate Partners were Zodiac Tank Container Terminals, ReGreen Excel and AnalytikJena. The Supporting Partner was Archroma. 

Industry Association Partners of the event included AMAI, CropLife, Gujarat Chemical Association, and Agro Chem Federation of India.