GFCL EV will invest Rs 6,000 crore in the indigenous EV battery supply chain
The company is banking on global opportunities for the EV battery chain, which is estimated to reach $300 billion by 2030
GFCL EV Products, a wholly owned subsidiary of Gujarat Fluorochemicals, on Wednesday announced an investment of Rs 6,000 crore to ramp up production capacity of battery materials for electric vehicles (EV) over the next four to five years.
The company’s goal is to establish a breakthrough electric mobility ecosystem by delivering approximately 200 GWh/year of battery solutions for electric vehicles and energy storage systems (ESS).
The investment will enable the company to meet high demand from the US, Europe and India.
The company said demand spiked due to government policies such as the IRA Act, the China Plus One strategy and the production-linked incentive (PLI) program.
“These markets form the cornerstone of GFL’s growth strategy and fit seamlessly with the company’s vision of sustainable and innovative solutions,” the company said.
Vivek Jain, Chairman, INOXGFL Group, said the investment highlights its critical role in shaping the future of the EV and ESS battery industry.
“The significant investment in the EV/ESS battery chemicals supply chain underlines our commitment to driving innovation in the electric mobility sector and the energy transition. As leaders, our goal goes beyond mere market awareness. We strive to be pioneers in shaping a cleaner and environmentally sustainable future. This resonates with our ethos of being a green group with growing businesses in the renewable energy sector,” said Jain.
Of the investment of Rs 6,000 crore, the company has already invested Rs 650 crore by December 2023, the statement said. Part of this investment is expected to be made in Dahej in South Gujarat.
The company is banking on global opportunities for the EV battery chain, which is estimated to reach $300 billion by 2030.
In the domestic context, GFL’s foray into the EV segment is crucial as the sector is expected to grow at a compound annual growth rate (CAGR) of around 30 percent between 2022 and 2030, the company said.
First print: February 7, 2024 | 10:00 PM IST