August 2025 – Business Update
Gujarat Fluorochemicals Limited (GFCL) EV division is moving ahead strongly in the battery materials industry. The company is becoming a key global player outside China, helping the world meet the rising demand for Electric Vehicles (EVs) and Battery Energy Storage Systems (BESS). With advanced technology, secure supply chains, and strong customer relationships, GFCL EV is setting new standards in this fast-growing market.
Building a Strong Position Globally
GFCL EV is known for its fully integrated manufacturing process. This means the company controls every step—from raw materials like AHF, LiF, and PF₅ to the final battery materials. This gives them two big advantages:
- High Quality – Products meet global standards.
- Lower Costs – Complete control helps keep prices competitive.
The company is also working closely with top clients in the US, Europe, Korea, Japan, and India. Many of these customers have visited GFCL EV’s facilities for audits and technical checks, which shows their trust in the company.
Products That Power the Future
GFCL EV is expanding its product portfolio quickly to meet market needs:
- LiPF₆: Production is already running smoothly and meets international quality standards. Expansions are planned for FY26.
- Electrolytes, Binders, and Additives: These products are almost ready for large-scale use, with multiple successful customer audits completed.
- LFP (Lithium Iron Phosphate): The plant is mechanically ready, and trial production will start soon.
These products together make up more than 50% of the material cost of EV batteries, making GFCL EV a strong supplier for the global EV industry.
Market Trends: A Big Opportunity
The demand for lithium-ion batteries (LiB) outside China is growing at a very fast pace.
- In 2024, the demand was around 567 GWh.
- By 2029, this is expected to rise to 1,800 GWh, almost three times higher.
Most of this demand will come from electric cars, energy storage systems, and consumer electronics. At the same time, many automakers and battery manufacturers are following a “China + 1” strategy, looking for reliable suppliers outside China. This trend benefits GFCL EV directly.
Industry Policies Helping Indian Companies
Recent US trade policies have made Chinese battery components expensive due to high tariffs. This opens new opportunities for Indian companies like GFCL EV to supply these products to the US market.
- The US is also encouraging “friend-shoring,” which means building supply chains with trusted countries like India.
- High tariffs on Chinese batteries make Indian-made products more competitive.
These policies are expected to boost GFCL EV’s exports in the coming years.
Investments for Growth
GFCL is investing heavily to support its EV materials business:
- A total of ₹6,000 Cr (around $700 million) will be invested by FY28.
- About ₹1,200 Cr has already been invested by March 2025.
- Another ₹1,100-1,300 Cr will be invested in FY26.
The company is also raising funds from private equity and sovereign investors by the end of Q2 FY26. This money will help expand production capacities, develop new products like LFP and binders, and strengthen research and testing labs.
Future Outlook
GFCL EV expects steady growth in FY26 as new products get customer approvals. The real boost in revenue is expected from FY27 onwards, with the company targeting:
- 2–2.5x revenue compared to total investment
- EBITDA margins of 25–30%
With strong market demand, favorable government policies, and advanced technology, GFCL EV is well on its way to becoming a global leader in EV battery materials.
The company is committed to driving cleaner mobility and better energy storage solutions for a sustainable future.
