Himadri Chem in talks to buy 10-12% in US battery co

Mumbai: Kolkata-headquartered Himadri Speciality Chemical Ltd is in advanced talks to buy a 10-12% stake in International Battery Company (IBC), a US-based lithium-ion battery cell technology firm, said people familiar with the matter. The potential deal, estimated at $10-12 million, is likely to be announced later this month, the people said.

A strategic investment in IBC would help Himadri enter newer markets and strengthen its position in the new energy ecosystem, the people cited above said, adding it would also enable Himadri to gain from IBC's simulation know how and R&D setup.

IBC, currently valued at about $100 million, currently has operations in the US and South Korea, with a 35,000 sq ft facility in the latter for producing lithium-ion cells.

Himadri and IBC did not respond to email queries.

IBC already has an Indian stakeholder, with state-run Mahanagar Gas Ltd (MGL) taking a 44% stake for ₹385 crore earlier this year. MGL formed a joint venture with IBC for manufacturing and distributing lithium-ion cells in India. Both are in the process of setting up a 500 MWh gigafactory near Bengaluru, with operations expected to start by December. This plant will localise battery manufacturing, lower costs, and cater to India's rapidly expanding mobility and energy storage markets.

Himadri's investment could complement this arrangement, creating a robust, India-centric battery ecosystem.

Himadri's core business spans carbon black, speciality chemicals, and increasingly, new energy materials such as anode materials, lithium iron phosphate (LFP) cathode materials, and lithium refining-components that account for roughly 65% of a battery cell's cost. This investment may pave the way for Himadri to enter the next-generation battery cell space. It may also bolster its global foray in clean energy and electric mobility.

Himadri currently is a supplier of anode and cathode material to IBC. The company said earlier this month that it plans to set up a factory to produce 200,000 million tonnes per annum of LFP, which would meet 100 GWh of li-ion battery, in phases in 5-6 years. This would be the first-ever LPF plant globally outside China, according to the company.