GFCL EV Launches LiPF6 Project to Boost Worldwide EV and Energy Storage Battery Supply
GFCL EV Products Ltd, a part of the Gujarat Fluorochemicals Ltd. family, has big plans for the electric vehicle (EV) world. They’re putting a whopping INR 6000 Crores (about $750 million) into developing batteries for electric cars and energy storage systems over the next 4-5 years.
So far, they’ve already spent Rs 650 Crores (around $81 million) up to the end of December 2023. Their goal? To produce batteries that can store a massive 200 gigawatt-hours (GWh) of energy every year. That’s a lot of power for a lot of electric vehicles and energy storage!
This ambitious project isn’t just focused on India. GFCL EV is looking to make a splash in big markets like the United States, Europe, and, of course, India. They’re taking advantage of some smart strategies and government incentives, like the IRA Act in the US, the China Plus One strategy, and India’s Production-Linked Incentive (PLI) scheme. These moves are part of their plan to offer sustainable and innovative solutions to the world.
What’s more, they’re not just throwing money around. They have a clear plan for making this investment profitable. They aim to earn twice as much from their assets as they spend (that’s the asset turnover ratio) and keep their earnings before interest, taxes, depreciation, and amortization (EBITDA) margin above 25%. This means they’re expecting to make a good profit once everything’s up and running at full speed.
Vivek Jain, Chairman of INOXGFL Group, talks about accelerating electric mobility and energy solutions with this investment. Dr. Bir Kapoor, CEO and DMD of Gujarat Fluorochemicals Ltd., points out that their company is all set to lead with innovative products and technologies in the EV and energy storage space.
Their lineup of products is quite impressive. They’re working on everything from the materials that go into batteries, like electrolyte salts and cathode active materials, to specialized solutions for newer types of batteries. They’ve even started commercial production of a key component called LiPF6 and expect to kick off another major project by the third quarter of 2024.
This move by GFCL EV is a big deal not just for the company but for the whole electric vehicle and energy storage industry. It’s estimated that the global market for EV batteries will be worth $300 billion by 2030. By jumping into this growing market, GFCL EV is not only looking to reduce the cost of electric vehicle batteries in India but also reduce the country’s reliance on imported battery materials. Plus, they’ve secured some tax benefits to boot. This could help push forward the electric vehicle revolution and make energy usage a lot greener.