The Tata Group, in collaboration with the Gujarat government, has signed a preliminary agreement to build a lithium-ion cell factory with an investment of approximately Rs 13,000 crore ($1.6 billion).
The move is part of India’s initiative to establish its own electric vehicle (EV) supply chain. The decision to set up the EV battery plant in Sanand, Gujarat, was made during a Tata Sons board meeting.
Tata Motors To Build Lithium-ion Cell Factory
Tata Motors already operates a plant in Sanand and has acquired the neighboring Ford Motors plant. The integration process of the two facilities has commenced and is expected to be completed within a year.
According to a joint statement by Tata’s unit Agratas Energy Storage Solutions and the Gujarat government, work on the plant is anticipated to commence in less than three years. The initial manufacturing capacity will be 20 Gigawatt hours (GWh), with the potential for doubling in the second phase of expansion.
The statement highlights the state government’s commitment to reducing carbon emissions by promoting electric vehicle production and the subsequent increase in the reliance on lithium-ion batteries. The project aims to establish a lithium-ion cell manufacturing ecosystem in the state.
Jaguar Land Rover (JLR) Announced its Electrification Plan in April
In April, Tata Motors’ subsidiary, Jaguar Land Rover (JLR), announced its electrification plan, committing to investing £15 billion ($19 billion) over the next five years to transition into an electric-first and modern carmaker. As part of this strategy, JLR’s plant in Wolverhampton, UK, will shift production from internal combustion engines to electric drive units and battery packs for the company’s next-generation vehicles.
Sources suggest that another battery plant from the Tata Group may be established in the UK or another European location, although the exact site has not been finalized. Tata Group Chairman N Chandrasekaran is expected to meet with British Prime Minister Rishi Sunak in the near future, according to recent reports.
While India’s car market is relatively small compared to its population, Tata Motors dominates the country’s EV sales, which constituted just 1 percent of India’s total car sales of approximately 3.8 million vehicles last year. The investment in the lithium-ion cell factory reflects Tata’s commitment to expanding its presence in the EV sector and supporting India’s transition to cleaner transportation.