- Automotive and industrial leading EV battery manufacturer, Exide Industries, is looking to invest a total CAPEX of Rs 6,000 crore to set up a 12 GWh lithium-ion cell manufacturing unit in Karnataka over the next 8-10 years.
- The Company Investing Rs 3,800-4,000 Crore for a 6GWh Lithium-ion cell Unit, which will be ready in 27-30 months.
“The first phase of 6 Gwh capacity cell making facility including modules in Karnataka will be ready in 27-30 months and will require an investment of Rs 3,800-4,000 crore. Funding will be in a combination of internal accruals and bridge loans. The total Capex will be Rs 6,000 crore to reach the 12Gwh capacity,” Exide MD & CEO Subir Chakraborty said at a virtual interaction after the company’s annual general meeting.
What is a Lithium-ion cell?
The lithium-ion cell is arguably the most common type of rechargeable battery used in portable electronic devices, such as laptops and mobile phones, due to its high energy density, short charging time, and reduced weight compared with other batteries such as NiMH and NiCd. Lithium-ion batteries are known for their efficiency in delivering power at an almost constant current to the load when charged.
What is the scope of expansion of Lithium-ion cells in the EV industry?
The State High-level clearance committee has passed 5 projects which include a large investment by Exide energy.
The investment is expected to create near to 45000+ job opportunities and is worth approximately ₹11,400 crore. Exide energy alone will be investing ₹6000 crores to enhance the manufacturing of Lithium-ion cells, packs, and modules at the defense & aerospace park near the Bangaluru International Airport.
Lithium-ion cells are the main feature of an electric vehicle battery. They are rechargeable, lightweight, and long-lasting.
How will Exide Energy be benefitted from such a huge investment?
The company is expecting to generate revenue of ₹10-12000 crore in the next 8 years. The company is going to set 12 GW Lithium-ion cell manufacturing plant in Karnataka. The first half i.e., 6GW will be installed in approximately the next 30 months using ₹4,000 from the bucket.