GFCL EV Products Announces INR 6,000 Cr Investment For EVs, Energy Storage System

Mobility Outlook Bureau
07 Feb 2024
02:39 PM
1 Min Read

This investment aims to facilitate the production of around 200 GWh/annually of Electric Vehicle (EV) and Energy Storage System (ESS) battery solutions.


GFCL EV Products Ltd (GFCL EV), a subsidiary of Gujarat Fluorochemicals Ltd. (GFL), has revealed a substantial investment of INR 6,000 crore over the next 4-5 years, with approximately INR 650 crore already invested until December 31, 2023.

With an international perspective, GFCL EV is strategically targeting high-demand regions such as the US, Europe, and India. The investment aligns with GFL's growth strategy, leveraging the IRA Act, China plus One strategy, and the Production-Linked Incentive (PLI) scheme, respectively. The company has initiated long-term partnerships with global customers, showcasing confidence in its capabilities and offerings.

GFCL EV is aiming for an asset turnover ratio of two times the CAPEX and an EBITDA margin exceeding 25%, indicating a strong focus on profitability and returns over the coming years, once optimal utilization levels are reached.

Vivek Jain, Chairman, INOXGFL Group, emphasised GFL's commitment to shaping the future of the EV and ESS battery industry through visionary investments and innovation. He stated that the significant investment underscores their dedication to driving innovation in the electric mobility sector and Energy Transition.

Dr Bir Kapoor, CEO and DMD Gujarat Fluorochemicals Ltd, said that GFCL EV is well-positioned to contribute significantly to the evolving landscape of energy transition driven by EV/ESS. The company aims not only to provide technological solutions but also to be architects of an environmentally conscious future.

GFCL EV’s current product portfolio includes electrolyte salts, additives, electrolyte formulations, cathode active materials, and specialised offerings for sodium-ion batteries. The commercial LiPF6 project has achieved production, and the LFP project is expected to be operational by Q3 of CY 24. This positions GFCL EV as one of the few companies globally providing a comprehensive range of products for EV batteries under one roof.

The global opportunity for the EV battery chain is estimated to reach $300 billion by 2030. In the domestic context, GFL's foray into the EV segment addresses challenges like the high cost of EV batteries and mitigates import dependence on key battery raw materials. This strategic move positions GFL at the forefront of India's electric mobility revolution and Energy Transition. Additionally, GFCL EV now qualifies for the concessional income tax rate regime.

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