India's Himadri Speciality to make lithium-ion battery parts; shares rise (updated)

Himadri Speciality Chemical

06/12/2023 07:21

(Adds share movement in paragraph 2, details about the plant in
subsequent paragraphs)
       BENGALURU, Dec 6 (Reuters) - India's Himadri Speciality
Chemical  HIMD.NS  said on Wednesday it would set up a facility
to make lithium-ion battery components for an estimated project
cost of 48 billion rupees ($576.12 million).
    Shares of the company jumped nearly 6% to a record high of
307 rupees. 
    Lithium-ion batteries, which power electric vehicles (EV)
and used to store energy, are expected to play a key role in
India's goal to be a net zero emitter of greenhouse gases by
2070.
    The country is expected to see sales of more than 10 million
EVs a year by 2030, rising more than ten fold from the last
fiscal year, according to a recent annual Economic Survey.
    Himadri Speciality was among at least a dozen Indian and
foreign companies which participated in the government's auction
this year of some newly found lithium blocks.    
    The plant will aim to make 200,000 million tonnes per annum
(MTPA) of lithium iron phosphate, one of the key materials used
in making lithium-ion battery cells, in phases over the next
five-six years, the company, said in a stock exchange filing. 
    The company added that at the full utilization of the plant,
it expects to generate a revenue of about 4 times the capital
expenditure. 
    The first phase of the capacity expansion, at an estimated
cost of 11.25 billion rupees, will be of 40,000 MTPA and
operational in 27 to 36 months at the eastern Indian state of
Odisha, said the company, which also makes specialty chemicals
for textile, oil and gas.  
                
($1 = 83.3160 Indian rupees)

 (Reporting by Rama Venkat in Bengaluru; Editing by Nivedita
Bhattacharjee)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;
 +91 8095218099;))