After forging partnerships with Hyundai and Kia, Exide Industries Ltd is now engaging with electric two-wheeler manufacturers in India to supply lithium-ion batteries. The battery manufacturer is in discussions with several two-wheeler companies developing electric vehicles.
”We are in active discussions with two-wheeler manufacturers who have an electric wheel programme. These discussions are at various stages for the supply of cells,” Exide Energy Solutions Ltd (EESL) Managing Director and Chief Executive Officer Arun Mittal told investors in a post-earnings call. However, Exide Industries’ management did not disclose the names of the two-wheeler companies they are in talks with, citing non-disclosure agreements (NDAs). “Since we have an NDA, I am under constraints to reveal any specific details at this point,” Mittal added.
EESL and the Bengaluru Giga Factory
Exide Energy Solutions Limited (EESL), a wholly-owned subsidiary of Exide Industries, is spearheading the company’s lithium-ion cell manufacturing efforts. EESL is establishing a giga factory in Bengaluru, set to commence operations in 2025 with an initial production capacity of 6 GWh. This capacity is planned to double to 12 GWh, to meet the increasing demand for lithium-ion batteries.
The project’s funding includes both internal accruals and loan financing. In the initial phase, the project will have a capacity of 6 GWh, divided equally between Nickel Manganese Cobalt (NMC) and Lithium Iron Phosphate (LFP) batteries. Exide Industries has partnered with SVOLT Energy Technology Co Ltd, a Chinese company specializing in lithium-ion batteries and storage solutions. Through this partnership, Exide has obtained the rights to utilize SVOLT’s technology and expertise for its lithium-ion cell manufacturing endeavors.
Partnership with Hyundai and Kia
In a significant development, South Korean automakers Hyundai Motor Co and Kia Corp have entered into a partnership with Exide Industries to supply locally produced lithium iron phosphate (LFP) batteries for their future electric vehicles in India. The companies have signed a non-binding agreement to formalize this collaboration, which underscores the growing importance of domestic battery production for the Indian EV market.
Investment and Financial Commitment
Exide Industries has already invested Rs 2,300 crore in its lithium-ion cell business. For the current financial year, the company plans to invest an additional Rs 1,000 crore in its lithium-ion subsidiary, reinforcing its commitment to this sector. These investments are part of a larger Rs 5,000 crore plan earmarked for the first phase of the lithium-ion cell manufacturing project, highlighting Exide’s aggressive push into the EV battery market.
Final Thoughts
India’s lithium-ion cell manufacturing sector is witnessing rapid growth due to the rising demand for electric vehicles and energy storage solutions. Government forecasts predict a substantial increase in the country’s battery manufacturing capacity, potentially reaching up to 120 GWh within the next three to four years. Key players like Amara Raja Batteries, Ola Electric, ACC Energy Storage, Reliance New Energy Battery Storage, and GODI India are actively investing in giga-scale battery manufacturing facilities, highlighting the industry’s confidence in India’s potential as a global leader in lithium-ion cell production. These investments are expected to not only address the growing demand for electric vehicles but also drive technological advancements in battery technology and energy storage systems nationwide.
