GFCL EV

# **GFCL EV: The Critical "Ex-China" Link in the Global Battery Revolution**

The global push for electrification has reached a crossroads where supply chain security is just as vital as the technology itself. As the world looks to de-risk from a China-centric battery ecosystem, **GFCL EV—a 100% subsidiary of Gujarat Fluorochemicals Ltd (GFL)—is emerging as a pioneering global supplier** of critical battery materials [1, 2]. Backed by the century-old legacy of the multibillion-dollar **INOXGFL Group**, GFCL EV is positioning itself as the "Ex-China" partner of choice for the world’s leading automotive and cell manufacturers [1, 3].

### **The "China + 1" Advantage and Geopolitical Tailwinds**

Currently, China dominates approximately **95% of the global EV battery supply** [4]. However, major Auto and Cell OEMs are now aggressively pursuing a **"China + 1" strategy**, seeking alternate vendors to ensure supply chain resilience [4, 5].

GFCL EV is uniquely positioned to benefit from significant **US and EU policy shifts**:

* **US Tariffs:** Combined US tariffs on Chinese Li-ion batteries are projected to reach **73% by 2026**, while Chinese graphite faces effective tariffs of nearly 160% [6].

* **Friend-Shoring:** India is increasingly viewed as a natural partner in the US **"friend-shoring" strategy**, with GFCL EV’s offerings being fully compliant with US IRA requirements [7, 8].

* **BESS Growth:** Beyond mobility, the surge in AI servers is driving a massive demand for **Battery Energy Stationary Storage (BESS)**, a sector expected to grow 4x by 2029 [9, 10].

### **A Comprehensive Portfolio: Covering >50% of Cell Costs**

While many players focus on single components, GFCL EV boasts the **broadest non-Chinese portfolio**, covering more than **50% of the total Bill of Materials (BoM)** for battery cells [11, 12]. This integrated strength ensures unparalleled quality control and cost competitiveness [13].

**Key product updates include:**

* **LiPF₆ (Electrolyte Salt):** Production has stabilized and meets global specifications, with Phase II and III expansions slated for FY26 [14].

* **LFP (Lithium Iron Phosphate):** The LFP plant has achieved **mechanical completion**, with trial production and commissioning beginning imminently [14].

* **Binders and Additives:** The company is a global leader in **PVDF and PTFE binders**, as well as essential additives like FEC and VC, which are critical for high-performance battery chemistry [15-17].

* **Backward Integration:** The company is fully backward integrated to **Fluorspar and HF**, securing the supply of critical raw materials through captive mines in Morocco [9, 12, 18].

### **Strategic Financial Momentum**

GFCL EV is not just growing; it is scaling with high efficiency. The company has committed a **cumulative capex of ₹6,000 Cr (~$725 Mn) by FY28** [8, 19]. With an expected **asset turnover of 2–2.5x**, the battery chemicals division is projected to reach revenues of **₹14,000 Mn by FY28**, representing a staggering **280% CAGR** [20-22].

### **Latest News: Capital Infusion and Market Valuation**

In a significant vote of market confidence, GFCL EV recently **raised ₹1,000 Cr at a valuation of ₹25,000 Cr** [23]. This capital infusion includes ₹200 Cr from promoters and ₹800 Cr from prestigious family offices and marquee investors, including the **Hero Group, Varun Beverages Group, and Motherson Group** [23].

An additional **₹1,000 Cr is targeted from private equity funds** by the end of FY2025 to further accelerate the expansion of LiPF₆ and electrolyte capacities [23, 24]. These funds are strategically allocated to strengthen R&D and QA/QC infrastructure, ensuring the company remains at the cutting edge of battery material innovation [24].

### **The Road Ahead**

With commercial production for several new lines starting in **Q4FY2025**, GFCL EV is on track to capture roughly **7% of the addressable global market** (excluding China) [22, 25]. For investors and partners, GFCL EV represents a rare opportunity to participate in a highly integrated, high-growth segment of the EV value chain before its **planned IPO in the next 3–4 years** [25, 26].

**Analogy for Clarity:** Think of GFCL EV as the "master chef" of the battery world. While others might only provide the salt or the flour, GFCL EV owns the farm, the spice rack, and the kitchen, providing over half the ingredients needed to cook the "perfect battery" for the global electric vehicle market.