Archive · 24 Aug 2026
Indian Specialty Chemical Firms Target the Battery Materials Opportunity
India is building more batteries for electric vehicles and energy storage.
This creates demand for special chemicals used inside batteries and supercapacitors.
China currently makes most of the world’s LFP battery materials.
Sudeep Pharma plans to make iron phosphate materials in India and other non-Chinese supply chains.
Its project is expected to cost about ₹300 crore and eventually produce 105,000 tonnes a year.
Tatva Chintan makes electrolyte salts used in supercapacitors and some energy-storage systems.
Its production was briefly affected by a shortage of raw materials linked to the Middle East crisis.
Both companies are expanding into energy storage, but their new businesses are still developing.
Their future performance will depend on construction, customer approvals, supply availability, and commercial sales.
India may require about 193,000 tonnes of cathode active material annually by 2030 to support 100 GWh of battery manufacturing.
More than 98% of global LFP cathode material and battery cells are currently produced in China, according to the International Energy Agency.
Sudeep Pharma is investing approximately ₹300 crore in battery-grade iron phosphate pCAM, with planned capacity reaching 105,000 MT by Phase 3.
Sudeep’s battery-materials plant is under construction and is targeted for commissioning by April 2027, with 44 active customers and eight MoUs.
Tatva Chintan’s ESS segment generated ₹6.3 crore in Q1FY27, while management retained its FY27 revenue guidance of ₹40 crore to ₹60 crore.
- Who
- Sudeep Pharma and Tatva Chintan Pharma Chemical are expanding into battery and energy-storage materials.
- What
- The companies are pursuing different opportunities: Sudeep is developing LFP and LMFP iron-phosphate precursors, while Tatva Chintan is producing electrolyte salts and solutions for supercapacitors and energy-storage applications.
- When
- Sudeep’s plant is targeted for commissioning by April 2027; Tatva Chintan expects to begin supplies to a hybrid-vehicle battery customer by November 2026, with full commercialisation expected by the end of 2027.
- Where
- The projects are being developed in India for domestic and international customers, including customers in South Korea, the United States, Japan, Indonesia, Europe, and Australia.
- Why
- India’s battery-manufacturing plans and the concentration of LFP production in China are creating an opportunity for non-China suppliers of specialised energy-storage chemicals.
Larger LFP supply-chain bet
Gradual electrolyte and supercapacitor expansion
Growth strategy
Larger LFP supply-chain bet
Sudeep Pharma is making a larger capacity commitment to battery-grade iron phosphate pCAM for LFP and LMFP batteries, with planned capacity of 105,000 MT by Phase 3.
Gradual electrolyte and supercapacitor expansion
Tatva Chintan Pharma Chemical is pursuing a more gradual expansion through electrolyte salts and solutions for supercapacitors and stationary energy-storage systems.
Execution profile
Larger LFP supply-chain bet
Sudeep’s opportunity depends on completing its plant, maintaining non-Chinese sourcing, and converting its customer pipeline into commercial demand.
Gradual electrolyte and supercapacitor expansion
Tatva Chintan has an existing ESS business and retained its FY27 revenue guidance, but its segment recently faced production delays because of a raw-material shortage.
Investment considerations
Larger LFP supply-chain bet
Sudeep offers stronger exposure to the expected LFP supply-chain opportunity, but its battery-materials project is still being developed and the company has limited trading history.
Gradual electrolyte and supercapacitor expansion
Tatva Chintan’s approach uses its existing PTC chemistry and customer relationships, although the article describes its return ratios as moderate because of volatile profitability.
- Projected cathode-material demand
- About 193,000 tonnes annually by 2030 for 100 GWh of battery manufacturing, according to NITI Aayog.
- China’s LFP share
- More than 98% of global LFP cathode material and LFP battery cells are produced in China, according to the International Energy Agency.
- Sudeep Pharma investment
- Approximately ₹300 crore for its battery-materials project.
- Sudeep planned capacity
- Capacity is planned to reach 65,000 MT in the near term and 105,000 MT by Phase 3; the Dahej site could be scaled to 200,000 MT by 2031.
- Sudeep customer pipeline
- The battery division has 44 active customers, 28 product approvals, eight MoUs, and eight major customers fully qualified.
- Tatva Chintan Q1FY27 ESS revenue
- ₹6.3 crore, up 76% year over year and representing 4% of total operating revenue.
- Tatva Chintan FY27 ESS guidance
- Management expects ESS revenue of ₹40 crore to ₹60 crore.