Suzuki, Toshiba & Denso partner to make batteries for EVs

Maruti Suzuki's parent company, Suzuki Motor Corporation has announced a joint venture partnership with Toshiba Corporation and Denso Corporation. The resultant company from this partnership will be producing lithium ion battery packs in India.

The three companies have already signed a partnership agreement. The joint venture company is expected to be incubated later this year, while production will start soon after. Suzuki will own 50% of the company, while Toshiba and Denso will have a share of 40% and 10%, respectively. The initial expected expenditure to make the company operational is currently tagged at 20 billion Japanese yen, which equates to around Rs. 1,184 crore.

An official statement released by Suzuki mentions that the Indian automotive market will soon see a rise in demand for electric vehicles, owing to the increasing attention being paid to the environment and urban air pollution. This rise in demand for electric vehicles will thus, in turn, expand the requirement for automotive battery packs. As a result, setting up the joint venture company ahead of this rising demand will help the manufacturer to stabilise lithium-ion battery production in the country.