GFCL EV Products Ltd (GFCL EV), a wholly-owned subsidiary of Gujarat Fluorochemicals Ltd. (GFL), has announced a significant investment of INR 6000 Crores, with approximately Rs 650 Crores already invested as of December 31, 2023, for the next 4-5 years. This investment aims to facilitate the supply of approximately 200 GWh/year of Electric Vehicle (EV) and Energy Storage System (ESS) battery solutions.
GFCL EV is strategically positioned to enter high-demand regions such as the US, Europe, and India. Leveraging initiatives like the IRA Act, China plus One strategy, and Production-Linked Incentive (PLI) scheme, the company’s expansion plans align with its vision for sustainable and innovative solutions. Long-term tie-ups with global customers further reinforce confidence in its capabilities and offerings.
The company targets an asset turnover ratio double the CAPEX and an EBITDA margin exceeding 25%, indicating strong profitability and returns once optimal utilization levels are achieved.
Vivek Jain, Chairman of INOXGFL Group, emphasized GFL’s commitment to innovation and investment in the EV/ESS battery chemicals supply chain, aiming to drive the transition towards electric mobility and Energy Transition.
Dr. Bir Kapoor, CEO and DMD of Gujarat Fluorochemicals Ltd., highlighted GFCL EV’s competitive advantages in developing cutting-edge solutions in the EV/ESS sector, aligning with the goal of an environmentally conscious future.
GFCL EV’s product portfolio includes electrolyte salts, additives, electrolyte formulations, cathode active materials such as LFP, cathode binders, and specialized offerings for sodium ion batteries. The company has already achieved commercial production for its LiPF6 Project and anticipates the LFP project to be operational by Q3 of CY 24, positioning itself as an industry frontrunner.
The global EV battery chain opportunity is estimated to reach $300 billion by 2030. Domestically, GFL’s entry into the EV segment addresses challenges like high EV battery costs and reduces import dependence on key battery raw materials, positioning GFL at the forefront of India’s electric mobility revolution and Energy Transition. Additionally, GFCL EV is now entitled to concessional income tax rates.
