Himadri Speciality Chemical announces India’s first plant for LFP Cathode active material

Himadri Speciality Chemical has announced India's first ever commercial plant for Lithium Iron Phosphate (LFP) Cathode Active Material.

The company aims to produce 200,000 MTPA of Lithium Iron Phosphate (LFP) Cathode Active Material, catering to 100 GWh of Li-ion Battery, in phases over the next 5-6 years. 

The global specialty chemical conglomerate said that phase 1 of the capacity expansion will be 40,000 millon tonnes per annum (MTPA), at an estimated cost of Rs 1,125 crore, and will be operational in 27- 36 months at Odisha. The commercial plant in Odisha will cater to global as well as domestic demand, the press release noted. 

The capex will be funded largely through internal accruals and balance from debt.

At full utilisation of 40,000 MT, the company expects to generate a revenue of around 4X, the capex with a very strong profitability and returns profile. 

Cathode materials are critical components required in the production of Lithium-ion cells that constitute 50-55% of the cell cost, with LFP being one of the predominant materials used in the manufacturing 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 that 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.'