GFCL EV

pending

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.