Exide Industries Plans Rs 1,000 Crore Investment in Lithium-Ion Cell Manufacturing for FY25
Exide Industries Ltd. has announced a significant investment of approximately Rs 1,000 crore in Lithium-Ion Investment manufacturing for FY25, Exide Energy Solutions Ltd (EESL), during the current financial year. This substantial investment is part of a broader Rs 5,000 crore allocation for the first phase of a lithium-ion cell manufacturing project.
EESL, which was established in 2022, represents a strategic move by Exide to venture into the burgeoning lithium-ion cell business, capitalizing on the increasing demand for electric vehicle (EV) batteries.
The company is in the process of setting up a giga plant in Bengaluru with a total capacity of 12 GWh. The first phase, which encompasses 6 GWh, is anticipated to be completed by 2025. So far, Exide has already invested Rs 2,300 crore in the lithium-ion cells business, including previous investments in EESL and a pack and module-making unit. The funding for this extensive project is sourced through internal accruals and loan financing, underscoring Exide’s commitment to advancing its capabilities in the energy solutions sector.
Expansion of Lithium-Ion Manufacturing Capabilities
The 6 GWh capacity for the first phase will be split equally between Nickel Manganese Cobalt (NMC) batteries and Lithium Iron Phosphate (LFP) batteries, catering to diverse market needs. EESL employs over 300 professionals who are engaged in various key functions such as sales, manufacturing, R&D, IT, and finance.
In addition to the Bengaluru plant, EESL operates a lithium-ion pack and module facility in Prantij, Gujarat, which has a capacity of 1.5 GWh. This facility further strengthens Exide’s position in the lithium-ion battery market.
Exide Industries has formed a strategic partnership with China-based SVOLT Energy Technology Co Ltd, a leading developer and manufacturer of lithium-ion batteries and storage solutions. This partnership grants Exide the rights to utilize and commercialize SVOLT’s advanced technology and know-how, thereby enhancing its manufacturing processes and product offerings.
Strategic Partnerships and Future Prospects
Recently, Exide has also entered into an agreement with South Korean automakers Hyundai Motor Co and Kia Corp. This collaboration aims to supply locally produced LFP batteries for their future electric vehicles in the Indian market, showcasing Exide’s role in supporting the EV revolution in India. By aligning with major automotive players, Exide is positioning itself as a key supplier in the rapidly growing electric mobility sector.
Key Takeaway: Exide Industries is making a significant investment to bolster its local manufacturing capabilities in the lithium-ion battery sector. This move is aimed at meeting the rising demand for electric vehicle batteries in India, supported by strategic partnerships and advanced technological collaborations.
