Production of 200,000 Tons of Lithium Iron Phosphate! Indian Firm Targets Lithium-Ion Battery Market

Himadri, a Mumbai-based Indian specialty chemical company, announced on December 6 that it will set up a lithium-ion battery module production plant with an estimated project cost of $576.2 million.

Lithium-ion batteries are the core components of new energy vehicles, and according to the latest annual economic survey, annual sales of new energy vehicles in India are expected to exceed 10 million by 2030, an increase of more than 10 times over the previous fiscal year. Lithium-ion batteries will play a key role in India's goal of net zero greenhouse gas emissions by 2070.

Himadri said in a stock exchange release that the plant aims to produce 200,000 tonnes of lithium iron phosphate, one of the key materials for making lithium-ion batteries, in phases over the next five to six years. When the factory capacity is fully utilized, the profit will be 4 times the expenditure.

Himadri said the first phase of the capacity expansion is expected to cost US$130 million and will operate in the eastern Indian state of Odisha for 27 to 36 months. The production capacity is expected to reach 40,000 tons/year. In addition, the company produces specialty chemicals used in textiles, oil and gas, and other sectors.

Himadri's stock price has recently risen nearly 6%, reaching a record high of $3.68.