These days, everyone is talking about Electric Vehicles (EVs) – electric scooters, cars, buses, etc.
All these EVs run on batteries, not petrol or diesel.
Also, when we make electricity from solar and wind energy, we need batteries to store that electricity.
So, as EVs and green energy grow, the demand for batteries is increasing very fast – not just in India, but worldwide.
Right now, China controls 90% of the global battery supply chain.
But after COVID and geopolitical tensions, countries like the US, Japan, and Europe want to reduce their dependence on China.
So, they are looking for another country along with China – that’s the “China +1” policy.
India is a top candidate to become that “+1” – this opens huge opportunities for Indian battery and chemical companies.
A battery isn’t just a box – it has many important parts made from special chemicals:
| Part | Simple Explanation | Purpose |
|---|---|---|
| Cathode (e.g., LFP) | The part where energy is stored | Used in EVs and energy storage |
| Anode | The part from where energy flows out | Works during charging/discharging |
| Electrolyte (e.g., LiPF₆) | A liquid that helps lithium ions move inside the battery | Allows battery to function |
| Binders & Additives | Used for battery safety and strength | Improves life, safety, performance |
All these together make a working lithium-ion battery.
Companies like GFCL (Gujarat Fluorochemicals Limited) are now making these important chemicals in India.
GFCL has built factories that make raw materials like AHF, PF₅, LiPF₆, LFP, etc.
This helps reduce import dependence and control cost and quality.
The Indian government is also supporting this industry through schemes like PLI (Production Linked Incentive).
GFCL is emerging as a non-Chinese global supplier of battery materials.
They have fully backward integrated facilities, making key materials like AHF, LiF, and PFâ‚….
LiPF₆ production is already stabilized and Phase II & III expansions are set for FY26.
Products like electrolytes, binders, and additives are in advanced customer validation stages.
LFP plant is mechanically complete, and commissioning is about to start.
Company has built a strong customer pipeline with leading OEMs in the US, EU, Korea, Japan, and India.
Capex of INR 6,000 Cr planned till FY28, with INR 1,200 Cr already invested by March 2025.
Revenue to ramp up from FY27 with EBITDA margin targets of 25-30%.
GFCL benefits from US policies discouraging Chinese battery imports – India stands to gain.
Positioned as a reliable partner under the US "friend-shoring" strategy.
More EVs are being launched – by Ola, Tata, MG, Mahindra, and many others.
Solar and wind energy needs battery storage for backup.
International companies want to buy from India due to the China +1 strategy.
The world is moving towards clean energy, and batteries are at the heart of this shift.
Battery manufacturing involves chemistry, technology, and factory scale.
India has the right talent, growing demand, and global interest.
With companies like GFCL taking bold steps, India can become a global hub for battery materials and technology.
