Himadri Speciality Chemicals plans to set up a 100-gigawatt battery material manufacturing plant to produce cathode and anode materials, the key components of electric batteries.
The company expects an additional revenue of ₹30,000 crore once this capacity is achieved over the next 5 years. The capex plans for the manufacturing facility are currently being drawn up, and the announcement is expected over the next few weeks, the company said.
Pilot plant commissioned ahead of commercial rollout
The company has already commissioned a pilot plant with a capacity of 400 tonnes, which will ensure seamless execution and operations of the commercial plant.
The cathode and anode are the two key components of a battery, accounting for 45 per cent of the battery, with the container (22 per cent) and separator (13 per cent) making up the rest.
EV revolution to drive battery materials demand
Anurag Choudhary, Chairman and CEO, Himadri Speciality Chemicals, said after the electronics and solar revolution, it is now the turn of the EV revolution, and this will be a much bigger opportunity over the next 10 years.
There is a huge demand for raw materials for cell manufacturing, and Himadri has positioned itself very strongly in this area because of the R&D we have done over the last 10 years, he said.
The products are ready for the market, both for the anode and cathode chemistry, he added.
Battery materials market set for rapid expansion
The market for EV battery materials is currently pegged at 2 TWh (terawatt hour) and is expected to more than double to 5 TWh by 2030. This leads to demand for over 10 million tonnes of cathode material and 5 million tonnes of anode material.
Himadri Speciality had earlier announced setting up a plant for lithium iron phosphate with a 40,000 tonne capacity, which will be increased to 2 lakh tonne.
“Full year of operations from LFP will happen in FY29, which will substantially increase our revenue and bottom line. At Himadri, we are committed to doing business keeping in mind a return on capital employed (RoCE) of a minimum 30 per cent,” said Choudhary.
The company expects FY28 net profit to cross ₹1,100 crore, driven by the existing business and some from the cell capacity business.