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Himadri Speciality to Set up 4,800 Cr. Plant for Li-Battery Cathode Active Material

Himadri Speciality Chemical Ltd. will be investing Rs. 4,800 crore over the next 5 years to develop a cathode active material manufacturing facility for Lithium-ion batteries. This cathode-active material will be used in Lithium Ferro Phosphate (LFP) batteries.

This information was conveyed by Himadri via its stock filing dated 6th December 2023.

First Commercial LFP Cathode Active Material Manufacturing Plant in India

Himadri’s upcoming plant in Odisha will be the first commercial LFP cathode active material manufacturing facility in India.

This facility, once complete, will have an annual capacity of 2 lakh Metric Tonne Per Annum (MTPA), which will fulfil raw material requirements for 100 GWh of LFP batteries. These batteries will further power Electric Vehicles (EVs) and Energy Storage Systems (ESS).

Himadri’s Manufacturing Facility to Come up in Phases

Himadri’s LFP cathode active material plant will be developed in a phased manner.

In the first phase, the company shall develop a production capacity of 40,000 MTPA with an investment of Rs. 1,125 crore. Phase-1 of the facility is expected to be commissioned in the next 27 to 36 months.

As per Himadri Speciality, the setting up of phase-1 will be funded by the company’s internal accruals.

Company Eyes 4,500 Cr. Revenue Post Achieving Full Utilisation of Phase-1

After phase 1 of Himadri’s upcoming plant achieves full utilisation, the company expects its revenue to grow by 4 times this CapEx, that is by approximately Rs. 4,500 crore.

Plant to Cater Global & Domestic Demand – Himadri CMD

Commenting on the company’s upcoming plant, Mr. Anurag Choudhary, CMD & CEO of Himadri Speciality Chemical Ltd., said “Our commercial plant at Odisha will cater to the global as well as domestic demand thereby helping in Government of India’s vision of Atma-Nirbhar Bharat”. He explained that the annual global demand for Lithium batteries is expected to grow at a rate of about 27% each year to reach 4,700 GWh till 2030. “Cathode Material which is a critical component for the LiB (Lithium-ion Battery) value chain is expected to increase to 9.4 million tonnes by 2030 to meet the required global production of LiB cells”, said Mr. Choudhary.

Company Share Price Gains over 3% Post Announcement

Post announcing the Odisha LFP cathode active material plant, Himadri’s share price jumped by 3.47% on 6th December 2023 as compared to that on 5th December 2023.

The volume of share trades, however, declined to 56,32,000 on 6th December 2023 from 70,72,000 trades on 5th December 2023.

About Himadri Speciality Chemical Ltd.: Kolkata-based Himadri Speciality Chemical was incorporated in 1987 as Himadri Castings Pvt. Ltd. The company reported a consolidated top line of Rs. 4,171.84 crore for FY-23.