Himadri Speciality Chemicals is expanding into the electric vehicle (EV) battery materials sector by initiating talks with global EV manufacturers and battery makers to supply lithium iron phosphate (LFP) cathode materials. The company aims to capitalize on the growing demand for cost-effective, safe, and environmentally friendly battery chemistries while strengthening its position in the global energy storage supply chain.
Phased Plan for 100 GWh Battery Supply
Himadri plans to roll out its LFP business in phases, targeting supply for nearly 100 GWh of batteries over the next five years. The company will serve both domestic and international markets, positioning itself as a reliable LFP supplier outside China, which currently dominates the segment. The first phase of the LFP cathode active material facility is already under development and is expected to be operational by Q3 FY27.
₹1,125-Crore Odisha Plant to Anchor Expansion
To support this expansion, Himadri will invest ₹1,125 crore in a large-scale LFP cathode active material manufacturing plant in Odisha, with a production capacity of 2 lakh metric tonnes per annum (MTPA). Once operational, it will be the largest LFP cathode plant outside China, reducing India’s import dependence and supporting the country’s growing EV and energy storage manufacturing ecosystem.
Rising Demand for LFP Batteries
LFP batteries are gaining traction globally due to cost, safety, and sustainability advantages. Compared with conventional lithium-ion chemistries, LFP batteries offer:
- Lower cost and higher affordability
- Longer lifespan of up to 10 years
- Superior thermal stability and resistance to overheating
- No cobalt or nickel, making them environmentally friendly
These features make LFP batteries attractive for mass-market EVs, solar energy storage systems, and portable power applications, driving strong demand across multiple sectors.
Strong Core Business Supports Diversification
Himadri continues to maintain a strong foothold in its core business segments, remaining India’s largest producer of coal tar derivatives and specialty carbon black.
In the December quarter, the company reported:
- Revenue: ₹1,133 crore
- EBITDA: ₹249 crore
- Net profit: ₹195 crore
These results exceeded internal projections and reflect operational efficiency and robust demand.
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