IFC invests in India’s first integrated battery materials facility

The International Finance Corporation has invested about 50 million dollars in GFCL EV Products Limited, a subsidiary of Gujarat Fluorochemicals Limited. The investment has been made through compulsorily convertible instruments and will support the development of India’s first fully integrated battery materials facility in Noida.

GFCL EV Products Limited was founded in 2021 and is based in Gujarat. It is part of the INOX and Gujarat Fluorochemicals Limited Group. The company manufactures advanced battery chemicals used in electric vehicles, energy storage systems and electronics. Its products focus on high purity materials for next generation lithium ion batteries. The company operates a backward integrated manufacturing chain that produces lithium hexafluorophosphate, electrolyte formulations, additives, PVDF and PTFE binders and LFP materials. It also produces hydrofluoric acid and lithium fluoride in house, which supports tighter cost and quality control. GFCL EV positions itself as a deep technology supplier in India’s electric vehicle ecosystem. The company has secured global validation from customers outside China, which has strengthened its international presence.

The new facility in Noida aims to bring most critical battery inputs under one integrated platform. The project will produce lithium hexafluorophosphate, cathode active materials, specialised electrolytes, performance additives and binders. Gujarat Fluorochemicals Limited stated that this degree of vertical integration is uncommon even at the global level. The company said the structure reduces dependence on external suppliers and gives India greater control over core battery materials.

Gujarat Fluorochemicals Limited said the support from the International Finance Corporation validates its integrated business model and strengthens its plans to scale production. Barclays advised GFCL EV Products Limited on the transaction. The company reported higher losses in FY25 because of commissioning work, validation requirements and manpower additions during the transition to commercial production. It said sampling by global customers, successful electrolyte validation and long term supply agreements for lithium hexafluorophosphate and binders indicate strong future revenue prospects.

The project is expected to reduce import dependence, support local manufacturing jobs, lower long term battery costs and improve India’s ability to compete in the global battery materials market. The company expects wider benefits for electric vehicle adoption and renewable energy storage.