Himadri Speciality Chemical is planning India’s inaugural commercial plant dedicated to lithium iron phosphate (LFP) cathode active material. The company is set to achieve a production capacity of 2,00,000 metric tons per annum (MTPA) of LFP cathode active material over the next 5-6 years, supporting the creation of 100 gigawatt-hours (GWh) of Li-ion battery in phases.
The initial phase of capacity expansion targets 40,000 MTPA, with an estimated investment of ₹1,125 crore. The plant to be located in Odisha, is expected to become operational within 27-36 months and will serve both global and domestic demands. The funding for this expansion will primarily come from internal resources, supplemented by debt financing.
Upon reaching full utilization at 40,000 MT, the company anticipates generating revenue approximately four times the initial capital expenditure, showcasing robust profitability and returns. As reported by AUTOCAR professional, cathode materials play a crucial role in Lithium-ion cell production, constituting 50-55% of the cell cost, and LFP is a key material in the manufacturing of LiB Cells. The growing demand for cathode material is projected to reach 9.4 million tons annually by 2030 to meet the global production requirements for LiB cells.
