50622 - GFCL EV

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Summary of Investment Information

Project Number

50622

Company Name

GFCL EV Products Limited

Date SPI Disclosed

Dec 12, 2025

Country

India

Region

South Asia

Projected Board Date

Oct 3, 2025

Environmental Category

A - Significant

Status

Active

Last Updated Date

Mar 6, 2026

Department

Regional Industry - MAS Asia & Pac

Industry

Manufacturing

Previous Events

Approved : Oct 3, 2025
Signed : Dec 4, 2025
Invested : Feb 18, 2026

Sector

All Other Basic Inorganic Chemical

Project Description

The proposed transaction involves an equity investment of up to INR 4.3 billion (approximately US$50 million equivalent) in GFCL EV Products Limited (GFCL EV or Company) in the form of Compulsorily Convertible Preference Shares (CCPS). IFC CCPS shall be converted to common shares at the time of Qualified Public Offering or other qualified liquidity event or equity financing round.

GFCL EV is a newly established Indian manufacturer specializing in chemicals for Lithium-ion Battery (Li-B) cells used in electric vehicles (EV) and stationary battery energy storage systems (BESS). GFCL EV is focused on the manufacture of electrolytes, salts, binders and Cathode Active Material (CAM). These materials go into Li-B cells and most either contain, or are based on, fluorine chemistry. The Company was established as a wholly owned subsidiary of Gujarat Fluorochemicals Limited (GFL or the Sponsor), an Indian chemical manufacturer with over 30 years of experience in fluorine chemistry. The Sponsor established GFCL EV with the aim of leveraging its manufacturing experience in fluorinated chemicals and backward integration into critical raw materials, to offer a cost-competitive alternative to global battery cell manufacturers looking to diversify their supply chain. The Company has began investing in a manufacturing facility in Gujarat, Maharashtra, close to the Sponsor's existing chemicals manufacturing facility. In addition, GFCL EV is also planning to establish a second facility in Oman in the future.

The proposed IFC investment aims to support the Company's manufacturing facility in Gujarat, India (the Project), which is currently undergoing phased commissioning. The proposed IFC investment will promote domestic value-added manufacturing within India's Li-B supply chain, facilitate the creation of direct and indirect green jobs, and contribute to the availability of critical raw materials essential for transport electrification and BESS, thereby enhancing supply chain resilience and global competitiveness.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	50.0

Development Impact

Assessment of Project Outcomes: The Project aims to strengthen domestic manufacturing of critical Li-B components in India, thereby reducing reliance on imports and supporting the expansion of the BESS and EV sectors. As India’s demand for Li-B cells continues to grow, the Project is expected to contribute to import substitution and position the country as a competitive exporter of battery materials. It will also promote greater local sourcing of raw materials, reaching up to 100% for select components such as PVDF (binder) and electrolytes. Beyond its economic impact, the Project will generate approximately 250 high-skilled direct jobs and create additional employment across the broader supply chain. It will further invest in workforce development to address skills gaps in this emerging sector, equipping local engineers and technicians with expertise in advanced chemical processes, materials science, and quality control. These efforts are expected to contribute meaningfully to India’s employment objectives and support its transition to a low-carbon economy. Assessment of Contribution to Market Creation: The Project aims to support the emergence of India as a competitive player in the global battery materials market by localizing the production of key Li-B components. In the context of a highly concentrated global supply chain, the Project will contribute to diversification efforts by establishing India’s first integrated battery materials facility, enhancing supply chain resilience and reducing production costs. Anchored in a rapidly growing domestic EV ecosystem and aligned with planned greenfield cell manufacturing investments, the Project is expected to catalyze broader development across the battery value chain. It will also facilitate deeper integration of India into global EV supply networks through exports, positioning both as strategic manufacturing and export hubs.

IFC’s additionality in this Project is both financial and non-financial. Financial additionality consists of the provision of long-term, flexible capital through CCPS, a financing instrument that remains scarce in India’s chemical sector. The Project requires patient and back-end loaded financing to enable successful scale-up without placing undue pressure on early-stage financial performance. IFC’s participation also plays a catalytic role in mobilizing additional long-term capital for this capital-intensive venture, which may have otherwise faced delays in securing adequate financing. Non-financial additionality includes standard setting and capacity building in environmental and social (E&S) management. Given the complexity of industrial processes and materials involved in this greenfield operation, IFC’s engagement will support the Company in aligning with international E&S standards. IFC will assist the Company in formulating and implementing an Environmental and Social Action Plan (ESAP), ensuring best practices are embedded across operational areas as the project becomes fully operational.

Indicator	Metrics	Comments
Direct Employment (#) Operations And Maintenance	individuals
Female Direct Employment (#) Operations And Maintenance	individuals

E&S Category Rationale / Risks and Mitigation

This is a Category A project according to IFC's Policy on Environment and Social Sustainability (2012). Based on information reviewed by IFC, the proposed project will have moderate to high adverse E&S impacts that are site specific and readily addressed through existing mitigation measures and good international industry practices (GIIP).

Key E&S issue and risks associated with the project include: Company’s capacity to institute and operate an environmental and social management system (ESMS) including environment, health and safety (EHS) risks in storage, handling and transport of hazardous chemicals; consistent management of labor and safe & healthy working conditions and occupational health and safety (OHS) policies and practices; gender-based violence (GBV) risks especially during construction; resource efficiency measures; monitoring and management of air emissions, wastewater treatment and disposal; and hazardous materials and waste disposal; onsite and offsite emergency planning and response; impacts on nearby community health and safety due to hazardous chemical transport and storage; and the company's stakeholder engagement activities related to E&S aspects.

Contacts

For Inquiries About the Project, Contact

Point of ContactRajiv Rao
Rajiv Rao
Head – EV Battery Chemicals
INOX Towers, plot number 17, Sector 16A, Noida – 201301, Uttar Pradesh, India.
https://gfl.co.in/gfclev.php

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Local Access of Project Documentation

The ESRS and ESAP documents will be available at the following address: INOX Towers, plot number 17, Sector 16A, Noida – 201301, Uttar Pradesh, India.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. Its purpose is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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