Himadri Speciality Chemical has announced India’s first ever commercial plant for Lithium Iron Phosphate (LFP) Cathode Active Material.
Over the next 5-6 years, the company plans to create 200,000 MTPA of Lithium Iron Phosphate (LFP) Cathode Active Material, enough to power 100 GWh of Li-ion batteries.
The global specialty chemical company stated that phase 1 of the capacity increase will be 40,000 MTPA at a cost of Rs 1,125 crore and will be operational in Odisha in 27-36 months. According to the press statement, the commercial factory in Odisha would meet both global and domestic demand.
The capex will be financed mostly through internal accruals and the remainder through debt.
The company intends to earn a revenue of roughly 4X at full utilization of 40,000 MT, with a very good profitability and returns profile.
Cathode materials are key components necessary in the production of lithium-ion cells, accounting for 50-55% of cell cost, with LFP being one of the most often utilized materials in the production of LiB Cells.
Cathode Material demand is expected to increase to 9.4 million tonnes annually by 2030 to meet the required global production of LiB cells.
Anurag Choudhary, CMD and CEO of Himadri Speciality Chemical said, “The Company’s achievement in pioneering innovation and sustainable growth in the cathode material landscape was in line with their sustainability goals of contributing to the ‘global and domestic carbon neutral revolution.”
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