Carbon Resources and Cosmo AM&T to invest ₹4,000 crore in Andhra Pradesh

Carbon Resources and South Korea-based Cosmo AM&T will set up a facility for the production of battery raw materials at an expenditure of ₹4,000 crore in Naidupeta, Tirupati district of Andhra Pradesh, according to a report by BusinessLine.

A new plant named 'Carbon Cosmo Advanced Materials Private Limited' will be established under this joint venture. The implementation of this project is expected to provide direct employment to 700 people, while creating indirect employment opportunities for another 3,500 to 5,000 people. 230 acres of land will be used for the implementation of this project, which will utilise the technology of South Korea's Cosmo AM&T.

Ferric Phosphate (FP) and Lithium Iron Phosphate (LFP) cathode materials will be produced at this plant. These materials serve as key raw materials in lithium-ion batteries used for electric vehicles and other applications. This facility will increase the local availability of critical raw materials required for battery production and reduce India's dependence on imports for battery manufacturing.

The company plans to complete this project in three phases. In the first phase, with an annual production capacity of 30,000 tonnes of Ferric Phosphate and 30,000 tonnes of Lithium Iron Phosphate, the plant is expected to be operational by mid-2028. The third and final phase is targeted to be completed by 2031, when the facility will commence production at full scale.

After the completion of the three phases, the annual production capacity of the plant will be 1.8 lakh tonnes apiece for Ferric Phosphate and Lithium Iron Phosphate. As part of the total production, up to 1.3 lakh tonnes can be exported annually.

Prior to the CII Partnership Summit to be held on November 12-13, representatives of Carbon Cosmo met Nara Lokesh, the Minister for Education, IT, and Electronics of Andhra Pradesh, on Wednesday. During this meeting, discussions were held regarding the proposed investment, production capacity, and future expansion plans. Minister Lokesh emphasised the need to focus on research and technological development alongside production. He suggested exploring the possibility of setting up a dedicated laboratory in collaboration with IIT Tirupati for the company to conduct research on quality testing of battery cathode materials and recycling technology to extract valuable materials from used batteries.

Lokesh stated that his objective is to develop Andhra Pradesh as a leading hub for electric vehicle and battery production in the country and that the state government will provide all necessary assistance to establish this industry.

The partner in this joint venture is Kolkata-based Carbon Resources Private Limited, which operates a calcined petroleum coke production facility in Bobbili, Vizianagaram district. Its South Korean partner, Cosmo AM&T, is an internationally recognised manufacturer of battery cathode materials and supplies its products to leading battery manufacturers, including Samsung SDI and LG Energy Solution.

Cosmo AM&T is a well-known company operating globally in the production of battery cathode materials.