Mumbai: TATA Group, one of India’s leading conglomerates, has made a significant move towards the development of the country’s electric vehicle (EV) industry by signing a deal to establish a lithium-ion cell manufacturing plant in Sanand, Gujarat. The project, which aims to create India’s own electric vehicle supply chain, will receive an initial investment of ₹13,000 crores from the TATA Group.
The Memorandum of Understanding (MoU) between Agratas Energy Storage Solution, a subsidiary backed by the TATA Group, and the Gujarat Government was inked on June 2nd, solidifying their commitment to the project. This strategic collaboration sets the stage for the construction of the manufacturing facility, which will play a crucial role in boosting the EV ecosystem in Gujarat and the entire nation.
Vijay Nehra, an official from the Gujarat government, expressed about the plant’s potential impact that, “The plant will go a long way in contributing to the development of the EV ecosystem in Gujarat and India.” The establishment of the lithium-ion cell manufacturing plant is expected to bolster the production of EV batteries, thereby supporting the growth of the electric vehicle industry and driving the adoption of clean and sustainable mobility solutions.
Reports suggest that the TATA Group is also considering the establishment of another battery plant, with potential locations being the United Kingdom or another European destination. The final decision regarding the exact location is yet to be confirmed. Notably, TATA Group Chairman N Chandrasekaran is expected to meet with British Prime Minister Rishi Sunak in the near future, further indicating the group’s intentions to expand its battery manufacturing capabilities.
The TATA Group’s foray into the lithium-ion cell manufacturing sector aligns with India’s ambitious goal of establishing a robust and self-reliant electric vehicle ecosystem. By investing in the production of EV batteries domestically, the country aims to reduce dependence on imports and foster the growth of the electric vehicle industry within its borders.