Mumbai-based Himadri Speciality Chemical is setting up a facility in Odisha to produce Lithium-ion Battery (LiB) components with a total annual production capacity of 200,000 MT and an estimated project cost of ₹48 billion (~$575.87 million) over a period of five to six years.

This investment will be made largely from internal accruals and debt.

The company aims to produce Lithium Iron Phosphate (LFP) Cathode Active Material, catering to 100 GWh of LiB capacity by 2030.

In phase I, the manufacturing capacity will be 40,000 MT, at an investment of  ₹11.25 billion (~$134.94 million). Operations are scheduled to begin in the next 27 to 36 months.

As the plant reaches its full utilization of 40,000 MT, the company expects to gain four times more revenue than the capital expenditure.

“Global demand for LiB is expected to grow by about 27% annually to reach about 4,700 GWh by 2030, and Cathode Material, which is a critical component for the LiB value chain, is expected to increase to 9.4 million tons by 2030 to meet the required global production of LiB cells said Anurag Choudhary, CMD and CEO of Himadri Speciality Chemical.

Meanwhile, in a BSE listing, the company announced it has completed the acquisition of 100% equity shares of Himadri Clean Energy, a wholly subsidiary of Himadri Speciality Chemical.

The subsidiary company will set up the manufacturing facility for Cathode Active Material through its step-down wholly-owned subsidiary, Himadri Future Material Technology. In June 2023, Himadri Speciality Chemical announced an investment of AU$10.32 million (~$7 million) in Australian startup Sicona Battery Technologies to produce high-quality anode materials.

According to a study by Wartsila and KPMG, India would need 38 GW of four-hour battery storage and 9 GW of thermal balancing power for the cost-efficient and reliable integration of 450 GW of renewables by 2030.