Tata to invest US$ 1.6 billion in EV battery manufacturing plant

The plant will have an initial production capacity of 20 GWh, which could be doubled in Phase 2.

The Tata Group plans to invest US$ 1.58 billion in a new lithium-ion battery manufacturing plant in India. Tata's Agratas Energy Storage Solutions has signed a memorandum of understanding (MoU) with the state government of Gujarat to set up the new factory in Sanand.

According to the company, work on the new plant is expected to commence in less than 3 years. It will have an initial production capacity of 20 GWh, which could be doubled in the second phase.

The upcoming battery manufacturing unit will be crucial for the country as it looks to create its own electric vehicle supply chain and reduce dependence on imports. That being said, the EV market in India is still in its nascent stages. Even though Tata Motors has the highest EV sales in the country, EVs account for just 1% of its total car sales.

Source: ET Auto