Mumbai-based Himadri Speciality Chemical has announced an additional capital injection of AU$10.49 million (~$7.01 million) in Australia-based Sicona Battery Technologies, a developer of materials for lithium-ion batteries.

The investment is aimed at subscribing to 3.793 million compulsorily convertible notes (CCNs) with a face value of AU$1.00 (~$0.67) each.

The remaining investment of 4.253 million CCNs will be made in agreed tranches.

As a result of the latest investment, the company now cumulatively holds 14.194 million CCNs in Sicona.

The investment aims to accelerate product and technology development for Sicona and to expedite the commercial deployment of lithium-ion batteries.

The company said it has not acquired any additional voting rights or control in Sicona at present. The investment will have no immediate impact on Sicona’s management or decision-making.

The CCNs will be convertible into shares of Sicona in accordance with the agreed terms.

In 2023, Himadri had announced an investment of AU$10.32 million (~$6.89 million) in Sicona to produce high-quality anode materials.

Lithium-ion batteries continue to dominate the battery market because of their long service life, high energy density, high efficiency, and fast power delivery. However, rising demand and supply chain disruptions in 2021 and 2022 has raised concerns about the availability and affordability of critical materials.

Himadri is involved in the production of anode materials for lithium-ion batteries in India. The company develops raw materials for the lithium-ion battery value chain.

In 2023, Sicona secured AU$22 million (~$14.71 million) in Series A funding to expand its operations in Australia and the U.S. The funding round was led by Himadri.

Himadri has also established a facility in Odisha to produce lithium-ion battery components with a total annual production capacity of 200,000 MT at an estimated project cost of ₹48 billion (~$575.87 million) over a period of five to six years.