GFCL EV Products, a 100% subsidiary of Gujarat Fluorochemicals (GFL), today announced a groundbreaking investment of Rs 6000 crore (out of which approx. Rs 650 crore is already invested till 31 December 2023) over the next 4- 5 years. This investment shall enable supply of approx. 200 GWh/annually of Electric Vehicle (EV) and Energy Storage System (ESS) battery solutions.
With an eye on the future, GFCL EV is poised to enter high-demand regions of the US, Europe, and India. Fuelled by the IRA Act, China plus One strategy, and Production-Linked Incentive (PLI) scheme respectively, these markets form the cornerstone of GFL's growth strategy and align seamlessly with the company's vision for sustainable and innovative solutions.
The company has already initiated long term tie-ups with renowned global customers, underscoring the confidence in its capabilities and offerings. GFCL EV aims for an asset turnover ratio of 2 times the CAPEX and EBITDA margin exceeding 25% marking a strong profitability and returns profile over the next few years once the company reaches optimal utilisation levels.
GFCL EV's current product portfolio includes electrolyte salts LiPF6, additives, electrolyte formulations, cathode active materials such as LFP and cathode binders such as PVDF and PTFE along with a specialized offerings of NaPF6 for sodium ion batteries and proprietary additives for fast charging. On the project front, GFCL EV's commercial plant for LiPF6 Project has already achieved commercial production and validation process prior to sale has commenced. Also, LFP project is anticipated to be operational by Q3 of CY 24, thereby catering to 30% of Lithium-ion battery (LiB) value, making it the one of the few companies globally to provide such a comprehensive range of products for EV batteries under one roof and solidify its position as an industry frontrunner. 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.