India is rapidly strengthening its domestic battery materials ecosystem as demand for advanced chemistry cells (ACC) continues to rise alongside increasing electric vehicle adoption and battery energy storage deployments. According to a recent note by Nuvama, India's ACC demand is expected to grow at a compound annual growth rate of 39 percent through FY30, while more than 10 manufacturers have already announced nearly 178 GWh of cell manufacturing capacity across the country.

The brokerage highlighted four listed companies that are making substantial investments across different segments of the lithium iron phosphate (LFP) battery value chain, positioning themselves to benefit from the anticipated expansion of India's battery manufacturing industry.

Gujarat Fluorochemicals is undertaking one of the most comprehensive investments in the sector with a planned capital expenditure of approximately ₹6,000 crore. The company aims to manufacture products covering nearly 70 percent of the material value of an LFP battery cell, including lithium hexafluorophosphate (LiPF₆), electrolytes, cathode active materials, natural graphite anodes, and binders. The project has secured funding from the International Finance Corporation and sovereign investors from the Middle East. Commercial production of LiPF₆ has already commenced, while the remaining products are expected to enter commercial production during the second half of FY27.

Himadri Speciality Chemical is expanding into both cathode and anode materials with a long-term objective of building production capacity equivalent to 100 GWh. The company's first-phase LFP cathode material plant, with an annual capacity of 40,000 tonnes, is scheduled to become operational in FY28. Management has indicated that the business could potentially generate revenue exceeding ₹30,000 crore over the next five to six years if its expansion plans are successfully executed.

Sudeep Pharma is entering the battery-grade iron phosphate segment, an essential raw material used in LFP cathodes. The company plans to establish 100,000 tonnes of annual production capacity through an investment of around ₹600 crore. The initial phase of 25,000 tonnes is expected to commence production by April 2027. The company has also secured qualification orders from 42 customers across Asia, Europe, and the United States.

Neogen Chemicals is focusing on manufacturing electrolytes and LiPF₆ electrolyte salts through a capital investment of approximately ₹1,800 crore. Commercial production of electrolytes is expected during the first half of FY27, while LiPF₆ salt production is scheduled for the second half of the financial year. The company is executing the project in partnership with South Korea-based MUIS to strengthen its technology capabilities.

Nuvama noted that lithium iron phosphate chemistry has emerged as the preferred battery technology globally because of its lower cost, improved safety, and longer operating life. Although China continues to dominate global battery material production, increasing efforts by global manufacturers to diversify supply chains under the China plus one strategy are creating opportunities for qualified Indian producers.

The brokerage added that while the long-term opportunity remains significant, execution risks continue to exist as most projects are currently under construction or undergoing customer qualification. In addition, global oversupply in certain battery materials, including electrolytes and iron phosphate, could affect industry profitability. However, policy support through the Production Linked Incentive (PLI) scheme, expanding domestic cell manufacturing capacity, and ongoing investments by Indian companies are expected to support the long-term development of the country's battery chemicals industry.