EV Boom: India’s electric vehicle (EV) revolution is shifting into high gear. With the government targeting 30% EV penetration by 2030, and automakers from Tata Motors to Hyundai doubling down on electric models, the investment buzz is undeniable.
So, if you want exposure to India’s EV boom without betting on volatile battery stocks, here are three key chemical players quietly powering the future of mobility.
Table of Contents
1. Neogen Chemicals: EV Boom
Why It Matters
If there’s one chemical company synonymous with India’s EV story, it’s Neogen Chemicals. The company is one of India’s only lithium-based chemical producers, manufacturing lithium salts, lithium bromide, and specialty organics used in electrolytes and energy storage.
EV Relevance
- Lithium salts are crucial for lithium-ion batteries used in EVs, laptops, and energy storage systems.
- Neogen’s early-mover advantage in lithium derivatives positions it as a core supplier for the next decade’s energy ecosystem.
Growth Snapshot
- Revenue CAGR (FY20–FY24): ~35%
- Market Cap (as of 2025): ₹12,000+ crore
- Ongoing capacity expansion at Dahej and Vadodara plants to support EV-grade chemical demand.
2. Tata Chemicals: EV Boom
Why It Matters
While most see Tata Chemicals as a traditional industrial player, it’s quietly transforming into a key materials supplier for clean mobility. The company produces soda ash, sodium bicarbonate, and lithium carbonate derivatives, which are critical in battery cathode materials and EV glass coatings.
EV Relevance
- Tata Chemicals’ lithium-ion recycling project and R&D in battery-grade lithium compounds make it an indirect but significant EV player.
- It also provides specialty coatings and additives for lightweight, heat-resistant EV components.
Growth Snapshot
- FY25 expected revenue: ₹16,000+ crore
- R&D investments in battery materials and circular recycling expected to grow 2.5x by FY27.
- Strong global presence — operating in the UK, US, and Kenya gives it geographic insulation.
3. Deepak Nitrite: EV Boom
Why It Matters
Deepak Nitrite has quietly become a powerhouse in high-performance chemicals, used in everything from semiconductors to EV batteries. Its key strength lies in nitroaromatics, acetone derivatives, and phenols — vital for electrolyte solvents and polymer binders that stabilize battery performance.
EV Relevance
- Its performance products division supplies critical chemicals for battery electrolytes and separators.
- Recently, Deepak Nitrite has partnered with global chemical majors to co-develop next-gen materials for solid-state batteries.
Growth Snapshot
- FY24 Profit After Tax: ₹1,700 crore
- CAPEX: ₹2,000 crore earmarked for advanced chemistry and EV materials.
- Expanding into Deepak Chem Tech, a subsidiary focused on future-ready chemistries for electronics and EVs.
Why These Chemical Players Are the Smarter EV Bet
| Factor | Battery Manufacturers | Chemical Suppliers |
|---|---|---|
| Market Volatility | High | Moderate |
| Entry Barriers | Medium | Very High |
| Dependency on Tech Cycles | High | Low |
| Profit Margins | 5–10% | 15–25% |
| Diversification | Limited | Multi-sector (EV, pharma, electronics) |
Conclusion
As India accelerates toward a cleaner, electrified future, chemistry is becoming the new currency of innovation. The country’s EV dream depends not only on battery plants and vehicles but also on the complex web of chemical reactions and materials that make them possible.
For investors, this means looking beyond the obvious — and seeing the Neogens, Tata Chemicals, and Deepak Nitrites of the market as crucial, long-term beneficiaries of the EV megatrend.
Bhakti Rawat is a Founder & Writer of InsureMyCar360.com. This site Provides You with Information Related To the Best Auto Insurance Updates & comparisons. 🔗