In a major boost to India’s electric vehicle (EV) and clean-energy ecosystem, the International Finance Corporation (IFC), the private-sector arm of the World Bank Group, has committed $50 million in funding to GFCL EV Products Ltd, a subsidiary of Gujarat Fluorochemicals Ltd (GFL). The investment will support the development of India’s first fully integrated battery-materials manufacturing facility in Gujarat, marking a significant step toward strengthening the country’s domestic battery supply chain.
The project aligns with India’s long-term goals of reducing import dependence, accelerating EV adoption, and building a globally competitive clean-energy manufacturing ecosystem.
First Integrated Battery Materials Plant in India to Come Up in Gujarat
The greenfield facility will be set up at Jolva near Bharuch in Gujarat and will manufacture a comprehensive range of advanced battery materials required for lithium-ion battery production. These include:
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Electrolyte salts such as LiPF₆
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Electrolyte formulations
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Lithium Iron Phosphate (LFP) cathode active materials
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PVDF and PTFE binders
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Other critical battery chemicals used in EVs and energy-storage systems
Once operational, the facility is expected to significantly localise the battery materials value chain, which currently depends heavily on imports.
Strategic Importance for India’s EV and Energy Storage Ecosystem
The IFC investment is being widely viewed as a transformational development for India’s EV battery infrastructure. By enabling large-scale domestic manufacturing of battery materials, the project will:
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Reduce India’s dependence on imported battery components
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Strengthen supply-chain security for EV manufacturers
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Lower production costs over time
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Support rapid electrification across passenger vehicles, commercial fleets and energy-storage applications
The investment also aligns with national initiatives such as Make in India, Atmanirbhar Bharat, and India’s net-zero commitments.
IFC’s First Battery Materials Investment in India
This marks IFC’s first direct investment into a battery-materials manufacturing company in India, underlining growing international confidence in the country’s clean-mobility transition. The funding is being made through compulsorily convertible instruments, which will eventually be converted into equity in GFCL EV Products.
IFC’s participation not only provides capital but also enhances the project’s global credibility, helping attract future international financing and partnerships.
GFL’s Vision to Build a World-Class Battery Materials Platform
Gujarat Fluorochemicals, part of the INOXGFL Group, is rapidly emerging as a key player in India’s advanced materials and battery ecosystem. Through its subsidiary, GFCL EV Products, the company is working towards building a large-scale, integrated battery-materials platform capable of serving both domestic and global markets.
The company aims to cover a significant portion of the battery bill of materials (BoM) required for lithium-ion battery manufacturing—positioning India as a serious global competitor in the battery supply chain.
Boost to India’s EV Manufacturing and Clean Energy Ambitions
The new battery-materials facility is expected to:
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Accelerate EV production across two-wheelers, three-wheelers, cars and commercial vehicles
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Support the fast-growing energy-storage sector for renewable integration
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Generate high-value manufacturing jobs
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Encourage further foreign investments into India’s EV supply chain
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Strengthen India’s position as a future global hub for battery materials and advanced chemistry manufacturing
As EV adoption surges across India, access to domestically sourced battery materials will be critical to ensuring sustainable, cost-competitive, and scalable growth.
Outlook: A Foundational Step for India’s EV Supply Chain
With global battery supply chains facing geopolitical risks and raw-material constraints, the IFC-backed GFL project represents a foundational investment in India’s energy security and clean-mobility future. As domestic EV demand continues to rise and gigafactory investments expand, integrated battery-materials manufacturing will become a cornerstone of India’s next phase of industrial growth.
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