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India's Chemical Firms Eye Battery Boom
16 Jun
Summary
- Indian companies leverage pharma expertise for battery chemicals.
- New plants in Gujarat to produce vital battery components.
- Companies aim to de-risk global supply chains from China.
The global battery chemicals market is poised for significant growth, projected to reach over $115 billion by 2030, driven by electric vehicles and energy storage. India's chemical sector is stepping in to meet this demand, with companies like Sudeep Pharma and Acutaas Chemicals leveraging their expertise.
Sudeep Pharma is establishing a new plant in Dahej, Gujarat, to produce battery-grade iron phosphate, a key cathode material for LFP batteries. This initiative aims to provide a reliable alternative to China's dominant supply, with a planned capacity of 100,000 MT by 2030, involving a ₹600 crore investment.
Acutaas Chemicals, meanwhile, has launched India's first plant for electrolyte additives, vinylene carbonate (VC) and fluoroethylene carbonate (FEC), at its Jhagadia unit. With a capacity of 2,000 MTPA for both, this venture is supported by three-year supply contracts, mitigating utilization risks.
Both companies are strategically diversifying from traditional pharmaceutical and chemical businesses to become critical suppliers in the battery value chain. This move is supported by global efforts to de-risk supply chains from China and aligns with India's goal to reduce import reliance, presenting a significant new growth avenue.
