Indian companies such as Aether Industries, Himadri Speciality Chemicals, and Tata Chemicals are investing in lithium-ion battery production, contributing to India's push for electric vehicle adoption
A lithium-ion battery is a key component used in electric vehicles to store renewable energy.
For battery cells with a capacity of 100 Giga Watt Hour (GWh) by 2030, a total investment of Rs 30,000–35,000 crore will be required across cathodes, anodes, and electrolytes, according to a Nirmal Bang report. Here, the cathode makes up the majority of the total battery cost (nearly 35 percent), followed by the container (21.9 percent), anode (9.9 percent), and copper (3.8 percent), among other components.
Aether Industries has recently announced a strategic agreement with a global lithium-ion battery producer to expand into the electrolyte additives market. This agreement includes the commercial supply of one electrolyte additive, and discussions have begun to develop three additional products.
Himadri Speciality Chemicals is also planning to establish a manufacturing facility for lithium-ion battery components with a total capacity of 2 lakh tonnes per annum. Over a roughly six-year period, an estimated Rs 4,800 crore will fund this project. The company or a subsidiary will do the manufacturing.
Ami Organics has signed a non-binding MoU with a global manufacturer of electrolytes. The company is also set to sign an MoU with the Gujarat government to set up a dedicated manufacturing facility at a cost of ₹300 crore. Earlier, the company mentioned that it has developed two products: one liquid electrolyte additive to increase the electrolyte capacity of lithium batteries and one for solid batteries.
Neogen Chemicals is another company planning to enter the electrolyte market for lithium-ion batteries. The company has signed an agreement with MU Ionic Solutions Corporate, Japan, to acquire its electrolyte manufacturing technology licence.
Commercial production for 30,000 MT per annum capacity will begin in 2025. Neogen's management said in an interaction with CNBC-TV18 that this will require a capex of Rs 450 crore with a revenue potential of Rs 1,000 crore to Rs 1,200 crore by the financial year 2027.
Gujarat Fluorochemicals will manufacture batteries for electric vehicles using its fluorine chemistry skills for making battery chemicals. It plans to invest nearly $1 billion across battery chemicals and green hydrogen segments. This will be done via a subsidiary called GCFL EV Products.
Lastly, Tata Chemicals has been on the radar since the Tata Group signed up for the $1.6 billion EV battery plant. While the company has not explicitly spoken about making EV chemicals, they have indicated that every tonne of Lithium Carbonate requires two tonnes of Soda Ash, which may translate into a significant opportunity for them.