INDUSTRY OUTLOOK

1. Electrolyte Salts

Demand Outlook:

India’s Li-ion battery market expected to reach 250–260 GWh by 2030, creating high demand for LiPF₆ salts.

Current domestic production is limited; most salts are span> imported from China and Japan.

Policy Support:

PLI schemes for Advanced Chemistry Cells (ACC) incentivize local salt manufacturing.

Strategic focus on self-reliance due to supply chain vulnerabilities.

Opportunity:

80–90% of global LiPF₆ capacity lies in China; India aims to localize to reduce dependency.

2. Cathode Active Materials

Demand Outlook:

LFP (Lithium Iron Phosphate) gaining traction in India for two-wheelers, three-wheelers, and ESS due to safety and cost advantages.

NMC (Nickel Manganese Cobalt) preferred for high-energy density applications (premium EVs).

Market Size:

Cathode materials account for 35–40% of total cell cost; India’s market projected to grow multi-fold with cell gigafactories coming online.

Trend:

Shift toward LFP dominance in India, aligned with global trends..

3. Binders

Demand Outlook:Binders constitute ~2–3% of cell material costs but are critical for electrode stability.

PVDF (Polyvinylidene Fluoride) demand rising sharply due to LFP and NMC chemistries.

Supply Gap:

India has negligible binder manufacturing; imports dominate (primarily from China and Europe).

Local production (e.g., by GFCL EV) offers strategic advantage.

4. Additives

Demand Outlook:

Specialty additives improve cycle life, safety, and performance of batteries.

Demand to surge alongside domestic cell production scaling up.

Technology Intensive:

Requires high R&D and customization for specific chemistries; niche global players dominate (Japan, Korea).

Overall Industry Drivers

Policy Tailwinds:

National Electric Mobility Mission Plan, FAME II, and PLI ACC Scheme (₹18,100 crore) accelerating cell ecosystem growth.

Gigafactory Pipeline:

Announced projects exceeding 70 GWh capacity by 2030.

Global Shift:

“China+1” strategy and localization imperative boosting domestic supply chain investments.

Export Opportunity:

Potential to become regional export hub for South Asia and Middle East.

Key Challenges

Technology dependence on global leaders.

Raw material sourcing (lithium, cobalt, nickel).

Need for large-scale backward integration (fluorspar, lithium compounds).

Latest shareholding pattern of GFCL EV Products Ltd.