Himadri Speciality Chemicals, one of India’s leading specialty chemicals manufacturers, has announced plans to set up the country’s largest battery materials manufacturing facility, a move that the company expects will significantly boost its revenue over the next five years.

The company plans to establish a 100 GWh battery materials manufacturing facility for cathode and anode materials—the two key components used in electric vehicle (EV) batteries. According to the company, the project is expected to generate an additional ₹30,000 crore in revenue over the next five years.

The company said the capital expenditure plan for the facility is currently being finalised, with a formal announcement expected over the next few weeks. It has already commissioned a 400-tonne pilot plant, the results of which are expected to ensure the seamless execution and operation of the commercial-scale facility.

Himadri expects global demand for anode and cathode materials to surge by the end of the decade. The market for these battery materials, currently estimated at 2 TWh (terawatt-hours), is projected to more than double to 5 TWh by 2030.

According to the company, this translates into demand for more than 10 million tonnes of cathode materials and 5 million tonnes of anode materials, positioning Himadri to benefit from its presence in both segments.

“The battery space is the largest opportunity of the next decade. After the electronics and solar revolution, it is now the turn of the EV revolution, and this will be much bigger. There is a huge demand coming for raw material components used in cell manufacturing,” said Anurag Choudhary, Chairman and CEO, Himadri Speciality Chemicals.

The company had earlier announced plans to set up a Lithium Iron Phosphate (LFP) cathode active material plant with an initial capacity of 40,000 metric tonnes, which will subsequently be expanded to 200,000 metric tonnes.

“A full year of operations from the LFP plant will commence in FY29, which will substantially increase our revenue and bottom line,” the company said.

LFP expansion seen as key long-term growth driver, says analyst

Commenting on the development, Ambareesh Baliga, SEBI-registered independent market expert, said:

“The big trigger for Himadri Speciality Chemicals is the setting up of a lithium iron phosphate cathode active material (LFP CAM) plant—the first such facility globally outside China. This expansion has the potential to add another ₹30,000 crore in revenue with an asset turnover ratio of nearly four times. LFP is a key raw material for EV batteries, and demand is expected to rise sharply as EV adoption accelerates globally, particularly following renewed focus on energy security after the US-Iran conflict.”

Shares deliver over a 50% return in under three months

The company shares have been riding a strong bull run in recent months, despite some recent volatility, hitting multiple record highs as investor interest remained robust, particularly after the company’s March-quarter earnings.

After moving largely sideways for nearly 18 months, the stock gathered strong momentum in April, surging 38%. The rally extended into May, while the stock has gained another 12% so far in June, taking its cumulative rise to 53% in less than three months.

During the rally, the stock touched a fresh record high of ₹718 apiece. Earlier, between March 2023 and September 2024, the stock had rallied nearly 700%, making it one of the biggest wealth creators in the Indian stock market.

On the technical outlook, market experts said the stock remains in a strong uptrend.

“Following its breakout from a prolonged congestion zone in mid-April 2026, Himadri Speciality Chemicals has been trading in a higher-high, higher-low formation above both its short-term and long-term moving averages, supported by a noticeable rise in volumes. Based on the current chart structure, we recommend a ‘buy on dips’ strategy. Any decline towards the ₹650 level could offer a fresh buying opportunity, with an upside target of ₹725,” the expert said.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.