GFCL EV Products, a wholly-owned subsidiary of Gujarat Fluorochemicals, unveiled plans for a substantial investment totalling ₹6,000 crore to augment the production capacity of electric vehicle (EV) battery materials over the next four to five years.
The company aims to establish an ecosystem for electric mobility, aiming to supply approximately 200 GWh/year of EV and energy storage system (ESS) battery solutions. The significant investment is intended to enable the company to meet the burgeoning demand from key markets including the US, Europe, and India.
The surge in demand can be attributed to various government policies such as the IRA Act, China Plus One strategy, and the production-linked incentive (PLI) scheme. Of the total ₹6,000-crore investment, GFCL EV Products has already invested ₹650 crore by December 2023. It is anticipated that a portion of the investment will be allocated to Dahej in South Gujarat.
As reported by Business Standard, the company is strategically positioning itself to leverage the global opportunities in the EV battery chain, which is forecasted to reach $300 billion by 2030. In the domestic landscape, GFCL’s venture into the EV segment holds significant importance, considering the industry’s projected compound annual growth rate (CAGR) of around 30 per cent between 2022 and 2030.
