Exide gets Rs 2,000 crore credit line from banks for lithium-ion cell project
Exide Industries Ltd. got a big loan of Rs 2,000 crore from banks for their Rs 6,000 crore project to make special batteries called lithium-ion cells. A spokesperson from the company said that a part of their company called Exide Energy Solutions Limited will use this loan to start making these special batteries and other things in a place near Bangalore.
Exide told the stock exchanges that it had given a corporate guarantee in favor of five banks for the approved line of credit. The five lenders are Kotak Mahindra Bank, ICICI Bank, HDFC Bank, Axis Bank, and HSBC Bank. The subsidiary will apply the money gradually.
Subir Chakraborty, MD and CEO of Exide has previously stated that the project’s first phase is expected to cost Rs 4,000 crore and have a 6 GWh capacity (gigawatt hour). The project has a 12 GWh overall project capacity. To unify all companies involved in the lithium battery industry under one roof, Exide Industries has also requested regulatory approval for the merger of its fully owned subsidiary Exide Energy Private Limited (EEPL) with Exide Energy Solutions (EESL).
At Gujarat’s Prantij, EEPL has a 1.5 GW fully automated lithium-ion battery pack and module production facility.
Promoter of the lithium cell factory is EESL.
Chakraborty recently addressed shareholders at the company’s annual general meeting. “Construction of the greenfield lithium-ion cell manufacturing plant at Bangalore is in full gear, and we hope to commence the first phase by the end of next year (2024–25).
The business continues to be positive on lithium-ion despite the likelihood of a future energy mix made up of many chemicals. The automobile industry is predicted to account for roughly 70% of lithium-ion battery consumption, with the remaining 30% coming from industrial uses. Exide Industries has already budgeted a capital expenditure of Rs 700 crore for 2023–2024 to increase capacity, modernize technology, and satisfy legislative and compliance requirements.