India’s EV boom to accelerates push to localise battery materials

India’s electric vehicle market is scaling up rapidly, forcing automakers and battery manufacturers to secure affordable, safe and locally sourced battery materials as the country prepares for mass EV adoption across passenger vehicles, two-wheelers and commercial fleets.With EV volumes rising and costs under scrutiny, manufacturers are increasingly shifting toward lithium iron phosphate (LFP) batteries, which offer lower costs, longer life cycles and higher thermal safety compared with nickel- and cobalt-based alternatives.

In this context, Himadri Speciality Chemicals has entered advanced discussions with global EV manufacturers and battery makers to supply LFP cathode active material. The company plans to support up to 100 GWh of battery capacity over the next five years in a phased manner, serving both domestic and international markets. The shift has intensified efforts to build a domestic battery materials ecosystem and reduce dependence on imports, particularly from China.

Industry participants say India’s EV and energy storage demand could require hundreds of gigawatt-hours of battery capacity over the next decade, making cathode materials a strategic priority. LFP batteries are also gaining ground in renewable energy storage, further amplifying demand as India expands its solar and wind capacity.

To meet this demand, Himadri is investing Rs 1,125 crore to set up a 2 lakh tonne per annum LFP cathode manufacturing facility in Odisha, with the first phase expected to be operational by the third quarter of FY27. Once commissioned, the facility is expected to be among the few large-scale LFP cathode plants outside China, a move aligned with global supply chain diversification.

Electric vehicle makers globally are gravitating toward LFP chemistry due to its resistance to thermal runaway, ability to operate at high temperatures, and lifespan of up to 10 years. The absence of cobalt and nickel also makes these batteries more affordable and environmentally friendly—critical factors for India’s mass-market EV push.

Himadri, India’s largest producer of coal tar derivatives and speciality carbon black, has been expanding into advanced materials alongside its core businesses. The company reported Rs 1,133 crore in revenue for the December quarter, with EBITDA of Rs 249 crore and net profit of Rs 195 crore, exceeding internal projections.

With multiple greenfield and brownfield projects planned over the next 10 quarters, industry observers see India’s EV boom emerging as a key growth driver for domestic battery material manufacturers.