Himadri Speciality Chemical Announces Lithium-Ion Battery Components Facility

Himadri Speciality Chemical Announces Lithium-Ion Battery Components Facility

Record Share Surge Following Major Project Announcement

Himadri Speciality Chemical, based in India, has declared its plans to establish a facility dedicated to manufacturing lithium-ion battery components. The estimated cost of this ambitious project is set at 48 billion rupees ($576.12 million). Following this announcement, the company’s shares witnessed a significant jump, rising nearly 6% to a record high of 307 rupees.

Strategic Move Towards EV and Energy Storage

The move to produce lithium-ion batteries aligns with India’s broader goals of becoming a net-zero emitter of greenhouse gases by 2070. Lithium-ion batteries are crucial for powering electric vehicles (EVs) and energy storage solutions. With India’s EV sales projected to exceed 10 million annually by 2030, up from the last fiscal year’s figures, this development is timely and significant.

Participation in Government’s Lithium Blocks Auction

Himadri Speciality was among several Indian and international companies participating in the Indian government’s auction of newly discovered lithium blocks this year. This initiative highlights the company’s proactive approach in securing raw materials for battery production.

Details of the Production Plant

The planned facility will primarily produce lithium iron phosphate, a key component in lithium-ion battery cells. The production target is set at 200,000 million tonnes per annum (MTPA), to be achieved in phases over the next five to six years. The company anticipates that once the plant reaches full capacity, it could generate a revenue approximately four times the capital expenditure.

Phase One of Capacity Expansion

The first phase of the capacity expansion, estimated to cost 11.25 billion rupees, is projected to produce 40,000 MTPA. This phase is expected to be operational within 27 to 36 months in the eastern Indian state of Odisha. Himadri Speciality, known for its specialty chemicals for the textile, oil, and gas industries, is venturing into this new domain as part of its diversification and growth strategy.

Financials and Market Response

The project’s financial implications and the positive market response underscore the strategic importance of this venture for Himadri Speciality Chemical. The company’s foray into the lithium-ion battery component market is poised to capitalize on the growing demand for EVs and energy storage solutions, reflecting a significant shift in the company’s operational focus. icon

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