Himadri Speciality Chemicals announced plans to establish a 100-gigawatt (GW) battery materials manufacturing facility to produce cathode and anode materials, two of the most critical components used in electric vehicle (EV) batteries. The ambitious project marks a significant step in the company’s strategy to become a leading supplier of advanced battery materials as the global electric mobility market accelerates.
Once the planned capacity is fully operational over the next five years, the company expects the project to generate an additional ₹30,000 crore in revenue. Himadri is currently finalizing the capital expenditure (capex) plans for the facility and is expected to make a formal investment announcement in the coming weeks.
Pilot Facility Operational to Support Commercial Scale-Up
To ensure a smooth transition to commercial production, Himadri has already commissioned a 400-ton pilot plant. The pilot facility will validate manufacturing processes, optimize operations, and facilitate the efficient commissioning of the large-scale commercial plant. Cathode and anode materials together account for nearly 45% of an EV battery’s overall composition, making them among the highest-value components in battery manufacturing. The remaining battery structure primarily consists of the container (22%) and separator (13%).
EV Revolution Creating Massive Growth Opportunity
Speaking about the company’s expansion plans, Anurag Choudhary, Chairman and CEO of Himadri Speciality Chemicals, said the electric vehicle revolution represents the next major industrial transformation after the electronics and solar energy sectors. According to Choudhary, the demand for raw materials used in battery cell manufacturing is expected to increase significantly over the next decade. He emphasized that Himadri has strategically positioned itself to capture this opportunity through a decade of sustained research and development. “The products are market-ready for both cathode and anode chemistry,” he said.
Battery Materials Market Expected to Expand Rapidly
The global market for EV battery materials is poised for substantial growth. Currently estimated at around 2 terawatt-hours (TWh), the market is projected to expand to nearly 5 TWh by 2030. This rapid growth is expected to create demand for more than 10 million tonnes of cathode materials and approximately 5 million tonnes of anode materials, offering significant opportunities for companies with advanced manufacturing capabilities. By investing in large-scale production, Himadri aims to strengthen its position in the global battery materials value chain while supporting the increasing localization of EV battery manufacturing.
LFP Capacity Expansion to Boost Future Revenue
In addition to its cathode and anode material plans, Himadri is expanding its Lithium Iron Phosphate (LFP) manufacturing capabilities. The company had previously announced an LFP plant with an annual production capacity of 40,000 tonnes, which it now plans to increase to 2,00,000 tons (2 lakh tons). The company expects the LFP business to contribute a full year of operations beginning in FY2028-29 (FY29), significantly strengthening both revenue and profitability.
Focus on High Returns and Long-Term Growth
Choudhary reaffirmed Himadri’s commitment to disciplined capital allocation and sustainable growth. “Full-year operations from the LFP business in FY29 will substantially increase our revenue and bottom line. At Himadri, we remain committed to investing in businesses that deliver a minimum 30% Return on Capital Employed (RoCE),” he said.
Positioning for the Next Phase of the EV Revolution
With investments spanning cathode materials, anode materials, and lithium iron phosphate (LFP) production, Himadri Speciality Chemicals is building an integrated battery materials portfolio aligned with the rapidly expanding electric vehicle ecosystem. As reported by thehindubusinessline.com, as global demand for advanced battery materials continues to surge, the company is positioning itself to become a key contributor to India’s emerging EV supply chain while strengthening its presence in international battery markets.
