Gujarat Fluorochemicals Limited (GFL) is set to elevate India’s electric mobility sector with a new investment. The International Finance Corporation (IFC), a member of the World Bank Group, is investing approximately $50 million in GFL’s subsidiary, GFCL EV Products Ltd. This funding will be executed through compulsorily convertible instruments.
Investment to Boost Battery Manufacturing in Gujarat
The investment aims to establish an integrated battery materials facility in Jolva, Gujarat. This project is designed to enhance domestic manufacturing capabilities and create numerous job opportunities. It also plays a vital role in supporting India’s energy transition and electric mobility goals.
GFCL EV’s Role in Electric Mobility
GFCL EV Products Ltd. is engaged in producing essential battery chemicals. The company focuses on backward integration for raw materials used in electric vehicles and stationary energy storage systems. Its diverse product portfolio accounts for nearly 50% of the lithium iron phosphate (LFP) battery cell bill of materials, which includes:
- Electrolyte salt LiPF6
- Electrolyte formulations and additives
- LFP cathode active materials
- Fluoropolymer binders like PVDF and PTFE
Recently, GFCL EV commissioned its LFP cathode active materials facility. The company is in the process of qualifying customers for its offerings, with sales of LiPF6 expected to begin shortly.
Future Plans and Funding
GFCL EV raised INR 1,000 crore in equity capital previously, achieving a valuation of INR 25,000 crore. The company plans to invest INR 6,000 crore over the next four to five years to expand its production capacity. Barclays acted as the exclusive financial advisor to GFCL EV in this transaction.
Comments from Leadership
Vivek Jain, Chairman of the INOXGFL Group, expressed that the IFC investment aligns with GFCL EV’s strategic plans and objectives in the battery materials sector. Dr. Bir Kapoor, DMD and CEO of Gujarat Fluorochemicals Ltd., noted that this is the first time IFC invests in an Indian battery materials firm, allowing GFCL EV to scale up production significantly.
Support for India’s Supply Chain
Imad N. Fakhoury, IFC Regional Division Director for South Asia, emphasized that the investment aligns with efforts to strengthen India’s supply chain for electric mobility. Carsten Mueller, IFC Regional Industry Director, stated that the collaboration aims to enhance localized battery material production while generating skilled job opportunities.
Gujarat Fluorochemicals Limited continues to be a leader in producing fluoropolymers, fluorochemicals, and battery materials. With manufacturing operations in Gujarat and a Fluorspar mine in Morocco, the company is well-positioned to support the growing demand for battery materials in electric mobility applications.
