LFP and NMC cathode powders - the most expensive material in a cell, made from lithium, iron or nickel-cobalt and phosphate.
Lithium carbonate or hydroxide is reacted with iron phosphate (for LFP) or nickel-manganese-cobalt precursors (for NMC), calcined in kilns and milled into a fine powder with tightly controlled particle size and coating. Cell makers qualify each batch before it goes onto the cathode foil.
Cathode and anode together are about 65% of a cell's cost (Himadri, quoted by Business Today Oct 2026), and over 90% of both are processed in China. Without local cathode, an Indian gigafactory stays an assembler. Budget 2026-27 cut customs duty on lithium carbonate, oxide and hydroxide to nil.
A large, cyclical pool tied to lithium prices; Chinese LFP cathode makers dominate on cost. Indian entrants (Himadri, Gujarat Fluorochemicals, Epsilon, Altmin) are at pilot-to-first-plant stage - the margin will depend on lithium sourcing and qualification with cell makers.