Automaker Ashok Leyland, India’s third-largest manufacturer of commercial vehicles, said on Monday it will invest more than 50 billion rupees ($571.4 million) in electric vehicle (EV) battery production over the next 7 to 10 years.
The investment will support its EV arm, Switch, and also supply batteries to other automakers and for energy storage applications. Ashok Leyland said it will partner with China’s CALB, one of the world’s top EV battery producers, for the project. CALB provides batteries for passenger cars, commercial vehicles and energy storage systems.
The move brings Ashok Leyland in line with peers Tata Motors and Ola Electric, as well as battery makers Exide and Amara Raja, all of which are pushing to establish local EV cell and battery production. Most Indian EV makers currently depend on imports from China and South Korea.
EV batteries typically account for as much as 40% of a green vehicle’s total cost, and automakers have said domestic production could help reduce expenses and strengthen supply security.