PL Sector Report: Chemicals - LFP Plant Visit Update – Lithium-Ferrous-Phosphate (LFP) demand to grow along with EVs

Chemicals - Swarnendu Bhushan - Co-Head of Research, Prabhudas Lilladher Pvt Ltd

LFP Plant Visit Update – Lithium-Ferrous-Phosphate (LFP) demand to grow along with EVs

Quick Pointers:

♦ LFP is a far superior technology for Indian driving conditions

♦ Access to Lithium Carbonate (Li2CO3) is key

We visited pilot plant facility of ARCI (International Advanced Research Centre for Powder Metallurgy & New Materials) and Altmin’s pilot LFP facility in Hyderabad. The technology was initially developed by ARCI and Altmin partnered with supply of Li2CO3 initially followed by further refinement of the process. LFP production is key to EV battery manufacturing in India. The ARCI/Altmin JV is expected to come up with 3GWh of LFP capacity within next two years. The company has got a 20acres land parcel for the same near an OEM which is foraying into EV battery manufacturing.

Altmin joined the bandwagon with edge in Li sourcing: The promoters of Altmin were already into importing of minerals that were not available in India. During same time, ARCI was developing a technology for LFP production but was stuck with supply of Li2CO3. The two got together in a JV for development and refinement of the process ending in a single-step solid state synthesis of LFP, the patent of which would be in joint ownership. The traditional manufacturing of LFP uses a hydro-thermal process which involves usage of several solvents and appears to be a polluting process. Instead, the solid-state does not involve any solvent.

Lithium sourcing a key: While Li reserves are concentrated in few countries like Bolivia, Australia and Brazil, China has dominance when it comes to Li refining (90%), cathode (95%) and anode (99%). Altmin has a sourcing agreement with YLB, Bolivia, which helps in sourcing of lithium. It is also expected to extend the partnership with Bolivia for its future expansions. Altmin uses spodumene for production of lithium, a process which gives much higher purity compared with brine.

A better technology: Compared with NMC (Nickel-Manganese-Cobalt), LFP offers several advantages- much larger number of cycles, better stability at higher temperatures, and better economy. However, the technology is concentrated in the hands of a few. Altmin/ARCI JV has developed a single-step solid state technology for production of LFP. The carbon coated LFP is then sold off to cell manufacturers. The traditional process of hydro-thermal production uses a number of solvents and emits much higher pollution. This process, used mainly by China, also relies on iron oxalate as a precursor, the supply of which is again controlled by China. ARCI’s initial process was a semi-solid process, but ARCI/Altmin have now developed a completely solid-state process which does not use any solvent and hence is much less polluting. The patent has been applied for and both ARCI and Altmin would be joint-holders of the same.

Future for Altmin: Altmin has been allotted a land parcel near the upcoming battery plant of an OEM. It is expected to set-up a 3GWh plant within next two years at a cost of Rs2.8bn. All plant and machinery are initially expected to come from Germany and Netherlands, but development of local vendors is expected in the future. Battery manufacturing capacity of 150-200GWh is expected to come up in India by 2030. Altmin is in talks with several other OEMs for supply of LFP.

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