Indian carmaker Tata Motors and Japanese battery manufacturer AESC are reportedly in talks about a possible partnership, which could lead to the production of Tata’s battery cells in India.
According to Autocar Professional, the nature of the potential partnership is currently under discussion and could involve a licensing agreement or an equity partnership. The specific terms and conditions are expected to be decided in the coming months. If the collaboration comes to fruition, it may encompass NMC cells for Tata’s subsidiary, Jaguar Land Rover (JLR), and possibly include the exploration of solid-state batteries.
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Earlier this summer, Tata Motors announced its intentions to establish battery cell manufacturing facilities in two locations: one in the Indian state of Gujarat and another in the United Kingdom. The Financial Times suggests that AESC might play a significant role in Tata’s planned battery cell factory in England and participate in other projects as well.
Sources indicate that Tata’s subsidiary, Agratas, responsible for supplying batteries to JLR’s future electric vehicles, is also exploring the development of its proprietary technology. However, additional time may be required for the technology to be production-ready. During this interim period, AESC could potentially supply the technology for the initial generation of batteries to be manufactured at the Somerset battery factory in England. Moreover, AESC might also supply battery cells for electric Jaguar models starting from 2025, likely produced at its newly established factory in Sunderland, UK.
Headquartered in Japan, Envision AESC was founded in 2007 as a joint venture involving three Japanese companies. Initially focused on electric vehicles, “Automotive Energy Supply Company” (AESC) had Nissan as its largest shareholder with a 51 per cent stake. However, in 2018, the majority share in AESC was acquired by the Chinese company Envision.
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Following the acquisition, Envision AESC set up a cell factory in the USA, situated close to Nissan’s vehicle plant in Smyrna, Tennessee. This facility is responsible for producing battery cells for the Japanese automaker.
As discussions between Tata Motors and AESC continue, the potential partnership could hold significant implications for the electric vehicle industry in both India and the UK. By fostering local battery production and advancing sustainable transportation, this collaboration might contribute to the growing adoption of electric mobility on a global scale.
