Gujarat Fluorochemicals’ EV arm to invest ₹6,000 crore over next 4-5 years

Shares of Gujarat Fluorochemicals Ltd (GFL) dipped 2.4% to ₹3,540.30 after GFCL EV Products Ltd (GFCL EV), a wholly-owned subsidiary of GFL, on Wednesday announced its plan to invest ₹6,000 crore over the next four to five years.

A portion of this investment is earmarked for development in Dahej, South Gujarat. This initiative aims to facilitate the annual supply of approximately 200 GWh of electric vehicle (EV) and Energy Storage System (ESS) battery solutions, GFL says in a filing.

As of December 31, 2023, GFCL EV has already invested ₹650 crore of the proposed ₹6,000-crore investment, as stated in an official release.

Vivek Jain, Chairman of the INOXGFL Group, said, “GFL's visionary investment and unwavering commitment to innovation highlight our pivotal role in shaping the future of the EV and ESS battery industry. The significant investment in the EV/ESS battery chemicals supply chain underscores our dedication to driving innovation in the electric mobility sector and Energy Transition. As leaders, our objective extends beyond mere market prominence; we aspire to be pioneers in sculpting a cleaner and environmentally sustainable tomorrow which resonates with our Ethos of being a Green Group with expanding businesses in the Renewable sector.”

GFCL EV's current product lineup comprises electrolyte salts like LiPF6, additives, electrolyte formulations, cathode active materials such as LFP, and cathode binders like PVDF and PTFE, along with specialised offerings of NaPF6 for sodium-ion batteries. On the operational front, GFCL EV's commercial plant for the LiPF6 project has commenced commercial production, with a validation process underway prior to sale. Additionally, the LFP project is projected to be operational by the third quarter of CY24, catering to 30% of the Lithium-ion battery (LiB) value, positioning the company as one of the few globally offering a comprehensive range of products for EV batteries under one roof, the company states.

“It may also be noted that this commissioning and commercial production before 31st March 2024 also makes GFCLEV entitled for concessional 15% Income tax slab,” the company says in a filing.

Bir Kapoor, CEO of Gujarat Fluorochemical Ltd, says, "With GFCL EV, we are well-positioned to contribute significantly to the evolving landscape of energy transition driven by EV/ESS. Backed by the rich and long experience of GFL and an integrated value chain GFCL EV will have synergistic and competitive advantages towards developing cutting-edge solutions. As we venture into this newage sector, our aim is not only to provide technological solutions but to be architects of an environmentally conscious future. We envision a world where innovation meets sustainability, and our foray into the battery supply chain is a testament to this commitment."

The global opportunity for the EV battery chain is estimated to reach $300 billion by 2030. This initiative of GFL into the EV segment not only tackles challenges such as the high cost of EV batteries but also reduces dependency on imported key battery raw materials, positioning GFL at the forefront of India's electric mobility revolution and energy transition, as per the release.