Initial capacity of Sanand factory could be 20 GWh
The Tata group signed an outline deal with the Gujarat government on Friday on building a lithium-ion cell factory with an investment of about Rs 13,000 crore ($1.6 billion). The move comes as India is looking to create its own electric vehicle (EV) supply chain.
According to sources close to the development, the decision to set up the EV battery plant at Sanand, Gujarat, was taken earlier this week at a Tata Sons board meeting.
Tata Motors already has a plant operational at Sanand, and has also acquired the adjoining Ford Motors’ plant. The process of integration of the two plants has begun and may take up to one year to complete.
A joint statement on the memorandum of understanding (MoU) between Tata’s unit Agratas Energy Storage Solutions and the Gujarat government said that work on the plant was expected to start in less than three years. It would have an initial manufacturing capacity of 20 Gigawatt hours (GWh), which could be doubled in a second phase of expansion, the statement said.
Work on the plant to start in less than three years
Decision on the plant taken at a Tata Sons board meeting earlier this week
Manufacturing capacity to be doubled in second phase of expansion
In April, JLR said it would invest nearly $19 billion in five years to reposition itself as an electric-first and modern carmaker
“As the state government commits to a vision to reduce carbon emissions by increasing the production of electric vehicles, reliance on lithium-ion batteries will also increase significantly as EV usage increases,” the statement said.