$216 Million EV Battery Materials Project in Oman: Implications for Investors and the Green Energy Sector
MUSCAT: GFCL EV Products Limited, an Indian specialty chemicals manufacturer, has officially established its wholly-owned subsidiary in Oman, named GFCL EV (SFZ) LLC. This new entity aims to create the Sultanate’s inaugural advanced battery materials facility, which will cater to electric vehicle (EV) and energy storage applications. The initial investment for this project, set to be located in the Salalah Free Zone of Dhofar Governorate, is projected to be $216 million.
The formation of the Omani subsidiary was announced through a regulatory filing by the parent company, Gujarat Fluorochemicals Limited, to Indian stock exchanges over the weekend. Plans for this pioneering project were first revealed last September during an event supported by the Public Authority for Special Economic Zones and Free Zones (OPAZ), the Salalah Free Zone, and Invest Oman.
According to the filing, the total investment for the incorporation amounts to RO 35 million, with GFCL EV Products Limited holding 99.70% and Gujarat Fluorochemicals Limited holding 0.30%.
The newly formed subsidiary will focus on the chemical manufacturing sector, particularly on producing a variety of chemicals. This expansion is part of the company’s broader strategy to enhance its presence in the chemical industry.
The Salalah project is designed as a state-of-the-art greenfield venture specializing in the production of chemicals necessary for lithium-ion battery cells used in electric vehicles and stationary battery energy storage systems.
In India, GFCL EV Products Limited is concurrently working on developing the country’s first fully integrated EV battery materials production facility located in Jolva, near Bharuch in Gujarat. This plant will manufacture essential components for lithium-ion batteries, including electrolyte salts (e.g., LiPF₆), electrolyte formulations, cathode active materials (LFP), and PVDF/PTFE binders, all in one location.
In a notable investment last December, the International Finance Corporation (IFC), a part of the World Bank Group, allocated $50 million to GFCL EV to support the development and scaling of this integrated facility, illustrating significant investor confidence and international support for the initiative.
Both facilities are pivotal to GFCL EV’s goal of establishing various nodes within the global battery materials supply chain, enabling geographic diversification and closer proximity to key markets. By having a presence in Oman, GFCL EV can effectively utilize regional trade routes and industrial clusters in the Middle East, while their operations in India will bolster domestic production and align with initiatives focused on clean energy and import substitution.
GFCL EV is a part of the INOXGFL Group, a diversified Indian conglomerate engaged in specialty chemicals—including fluoropolymers and fluorochemicals—advanced battery materials, and renewable energy sectors such as wind, solar, and green energy generation, with a combined market capitalization of approximately $12 billion. This group encompasses various listed and private entities, including Gujarat Fluorochemicals Limited, Inox Wind, and Inox Green Energy Services.
Special Analysis by Omanet | Navigate Oman’s Market
The establishment of GFCL EV (SFZ) LLC in Oman signifies a pivotal opportunity for local businesses, particularly in the growing electric vehicle and energy storage sectors. This $216 million investment not only enhances Oman’s chemical manufacturing landscape but also positions the country as a key player in the regional battery materials value chain.
Smart investors should consider the potential for partnerships in this nascent industry, while entrepreneurs might explore ancillary services and solutions that cater to the emerging demand for sustainable energy technologies.
