 "Bir Kapoor, deputy managing director & chief executive officer, Gujarat Fluorochemicals Limited")
GFCL EV Products, wholly owned subsidiary of BSE-listed Gujarat Fluorochemicals Limited (GFL), recently announced a Rs 6,000 crore investment to ramp up the production capacity of battery materials for electric vehicles. Bir Kapoor, deputy managing director and chief executive officer, GFL, in a video interview with Nitin Kumar discusses the company’s plans to deploy the existing backend supply chain of flourspar and its Moroccan mines to develop modern battery solutions. Edited excerpts:
What are the growth prospects of your business?
Decarbonisation and transition to renewable energy will boost our market. Our Rs 6,000 crore investment will enable us to supply around 200 GWh annually of electric vehicle (EV) and energy storage system (ESS) battery solutions.
In the long term, we anticipate having demand from both domestic and export markets, with 60-65 per cent from (the) exports (market) and 40-35 per cent from the domestic market. By 2030, the projected GWh demand in India will be around 250 GWh, whereas global demand will reach 6,000 GWh. So, India as part of global business would be about 5 per cent in GWh branch term. We may have 35 per cent or so of the business coming from this region. This forecast aligns with our projected capacity, likely to be reached by around 2030, following the investment announcements we have made.
What are the primary raw materials you source for the battery manufacturing process, and who are the suppliers?
Our philosophy at GFL for all the areas we have ventured into is that we normally prefer backward integration as much as possible. In battery materials, there are two to three raw material streams, the primary being lithium, salts (phosphorus), and fluorspar (fluorine). In fluorspar, we are already backward integrated and have mines in Morocco. Phosphorus supply is already available.
For lithium, we are going to have two types of arrangements for the supply chain. One is where OEMs (original equipment manufacturers) have secured lithium supplies and they supply it directly to us, or they pass it through. Regarding potential sources, we have been looking at sources in Argentina, among many other countries.
Today, lithium prices are low, and lithium capacities and mines are already coming up. So, lithium availability will not be a concern. Moreover, auto OEMs ensure that lithium is provided to us.
How many EV OEMs have signed raw material supply agreements?
In the automotive supply chain, there is tremendous confidentiality. But to give a perspective, we have engaged with all the big battery manufacturers and automobile manufacturers that one can think of.
In terms of discussions, we are engaged with all the Indian players and a few global players. Agreements happen in various stages, and we have crossed certain hurdles, but because of non-disclosure agreements, I cannot share details.
Are these global players or domestic ones? Could you share details regarding the nature and scope of these agreements?
There is no domestic player, at least in the lithium supply. Lithium is all global. A large part of our lithium supply is secured by our potential customers. Today, a large part of the lithium supply is captured by auto OEMs, whether it is Ford, GM, or other major automakers.
Contracts with OEMs are going to be long-term contracts. We are starting very small now. In India, nobody has set up facilities as of now. We are in the advanced stages of qualification.
Within India, we have not yet finalised any contract. All contracts are in the process. However the qualification process and contract signing process go hand in hand. Our commercial production has just started. Our discussions are in the advanced stages of signing.
Is your company planning to bid for the advanced chemistry cell (ACC) production-linked incentive (PLI) scheme?
We are good at making advanced performance materials. That is our expertise. Fluoropolymers are very similar in terms of their qualification; they go through a similar set of quality control processes. We have expertise in making advanced perforation material but do not have experience in cell manufacturing.
How do you plan to navigate the rapidly evolving landscape of battery technologies and chemistries?
Our plant will have the dual capability of manufacturing advanced materials for lithium and sodium-ion batteries. GFCL EV’s current product portfolio includes electrolyte salt lithium hexafluorophosphate, additives, electrolyte formulations, cathode active materials, such as lithium iron phosphate, and cathode binders, such as polyvinylidene fluoride and polytetrafluoroethylene, along with specialised offerings of sodium hexafluorophosphate for sodium-ion batteries.
