In a significant move towards bolstering India’s electric vehicle (EV) supply chain, the renowned Tata Group has sealed a preliminary agreement to construct a cutting-edge lithium-ion cell manufacturing facility. This groundbreaking endeavor will be backed by an investment of approximately 130 billion rupees ($1.58 billion).
India’s car market, relative to its vast population, remains relatively modest. However, Tata Motors stands as a dominant force in the country’s EV sales, despite these sales accounting for a mere 1% of India’s total car sales, which amounted to roughly 3.8 million vehicles last year.
According to a joint statement issued by Agratas Energy Storage Solutions, a subsidiary of Tata Group, and the government of Gujarat, the plant will be located in Sanand, in the northern region of the state. The statement revealed that construction is slated to commence within the next three years, emphasizing the urgency of India’s ambition to foster a thriving EV ecosystem.
The initial phase of the factory will boast a manufacturing capacity of 20 Gigawatt hours (GWh), with plans for doubling this capacity in a subsequent expansion phase. “The plant will go a long way in contributing to the development of the EV ecosystem in Gujarat and India,” stated Vijay Nehra, an official from the Gujarat state government, during a conversation with Reuters.
With this visionary investment, Tata Group aims to accelerate the progress of electric mobility in India, heralding a new era of sustainable transportation while forging a robust foundation for the country’s EV industry.
