India's chemical companies are now eyeing the EV battery value chain

Aether Industries recently announced a strategic agreement with a global Lithium Ion battery producer to foray into the electrolyte additives space. This included commercial supply of 1 electrolyte additive and discussions have begun for three other products.

Himadri Speciality Chemicals will also be setting up a manufacturing facility to manufacture Lithium Ion Battery components with a total capacity of 2 lakh tonnes per annum. This will either be done via the company itself or through a subsidiary. The project will cost around ₹4,800 crore, which will be spent over a 5-6 year period.

Ami Organics has signed a non-binding MoU with a global manufacturer for Electrolytes. The company is also set to sign an MoU with the Gujarat government to set up a dedicated manufacturing facility at a cost of ₹300 crore. It had earlier mentioned that it has developed two products - one liquid electrolyte additive to increase the electrolyte capacity of lithium batteries and one for solid batteries.

Another company planning an entry into the electrolytes for lithium ion batteries is Neogen Chemicals. The company has signed an agreement with MU Ionic Solutions Corporate, Japan to acquire its manufacturing technology license for electrolytes. Commercial production for 30,000 MT per annum capacity will begin in 2025. In an interaction with CNBC-TV18, Neogen's management said that this will require a capex of ₹450 crore with a revenue potential of ₹1,000 crore to ₹1,200 crore by financial year 2027.

Gujarat Fluorochemicals will manufacture batteries for Electric Vehicles using its flourine chemistry skills for making battery chemicals. It plans to invest nearly $1 billion across segments like battery chemicals and green hydrogen. This will be done via a subsidiary called GCFL EV Products.

Lastly, Tata Chemicals has been on the radar since the Tata Group signed up for the $1.6 billion EV battery plant. While the company has not specifically spoken about making EV Chemicals, they have indicated that every tonne of Lithium Carbonate requires two tonnes of Soda Ash, which may translate into a big opportunity for them.