The battery maker expects to complete the construction of the main cell, admin and warehouse buildings of the lithium-ion cell manufacturing project, and start production by the middle of next year.
14 Nov 2024 | 17758 Views | By Kiran Murali
Battery major Exide Industries, which is nearing the completion of its lithium-ion cell battery manufacturing facility, expects to commercialize the plant with a capacity of 6 GWh under the first phase towards the end of the financial year 2026.
“The construction work, including the main cell, admin, and warehouse ...
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Battery major Exide Industries, which is nearing the completion of its lithium-ion cell battery manufacturing facility, expects to commercialize the plant with a capacity of 6 GWh under the first phase towards the end of the financial year 2026.
“The construction work, including the main cell, admin, and warehouse buildings is closer to completion. Equipment placement and installation are ongoing at the site. We have also started the relocation of teams to support project activities,” Avik Roy, MD and CEO, Exide Industries told investors.
Through its subsidiary Exide Energy Solutions Ltd, Exide Industries is setting up a gigafactory in Bengaluru to manufacture lithium-ion cells. The facility will have a capacity of 6 GWh in its first phase, which will eventually be ramped up to 12 GWh.
The investment for the first phase of the project, which also includes battery packs and module facility, is pegged at around Rs 5,000 crore. The capacity in the first phase is likely to be equally shared between Nickel Manganese Cobalt and Lithium Iron Phosphate (LFP) chemistry-based cells.
“In the middle of 2025, we will have our installation commissioning as well as initial run off complete. We will start the production and will take time to stabilize on complete homologation. So, by FY26 end, we should be able to commercialize it,” Roy said.
The lithium-ion cells manufactured from the factory will cater to both mobility and stationary applications. The management noted that some of the cells manufactured will be common for both applications.
Exide has a partnership with China-based SVOLT Energy Technology Co Ltd, which develops and manufactures lithium-ion batteries and storage solutions for multiple applications. Exide has secured the rights to use and commercialize SVOLT’s technology and know-how for lithium-ion cell manufacturing.
Recently, South Korean automakers Hyundai Motor Co and Kia Corp tied up with Exide to equip future electric vehicles in the Indian market with locally produced lithium-ion batteries based on lithium iron phosphate (LFP) chemistry.
Meanwhile, Exide did not specify the exact timeline and investment for the second phase of the gigafactory project, which will expand the capacity to 12 GWh. “The phase two investment outlay is expected to be lower because we will be investing in a common facility and land. We will decide those in the due course of time, depending on the demand and market scenario,” Roy added.
Exide’s major competitor, Amara Raja is also setting up a lithium-ion cell plant, which will have a manufacturing capacity of 16 GWh and 5 GWh battery pack capacity over the next 10 years. The first phase of the battery pack plant was inaugurated recently and the facility is expected to initially start commercial production of cells based on NMC by the end of 2026.
Currently, India's lithium-ion cell requirements are largely met by imports from China, Japan, and South Korea. The demand for lithium-ion batteries from electric vehicles and storage applications in India is estimated at 102 GWh by the end of this decade and will expand further to 244 GWh by 2035.
Localisation of cell manufacturing is something that is being looked at keenly as made-in-India lithium-ion batteries hold immense potential to drive the adoption of electric vehicles in the country. Apart from traditional lead-acid makers Exide and Amara Raja, companies such as Ola Electric, Reliance Industries, JSW Group and GODI India are also establishing their facilities for lithium-ion battery manufacturing.