Storage battery major Exide Industries expects the first phase of the green-field 12-gigawatt lithium-ion cell manufacturing plant in Bengaluru to be completed by the end of the current financial year, as the project is progressing according to the timelines.

The Kolkata-based company’s subsidiary, Exide Energy Solutions (EESL), is in the final stages of establishing the lithium-ion cell manufacturing project. With India’s electric vehicle market rapidly expanding, EESL signed a non-binding memorandum of understanding (MOU) with Hyundai Motor and Kia Corporation for strategic co-operation in the market, Exide Industries said in its annual report for the financial year 2023-24, which was released on Thursday.

Amidst the surging demands for lithium-ion batteries and storage solutions, EESL’s scope extends to producing, assembling, and commercialising of battery modules and packs tailored for mobility and grid-based applications.

“Over 300 professionals are actively involved in various capacities to ensure timely (Bengaluru) project completion. Efforts are underway to attract new customers and secure raw material suppliers, both domestically and internationally,” the company’s MD & CEO Avik Roy said.

“Exide’s extensive legacy in the lead acid battery sector has firmly positioned the company as a prominent player with a diversified product portfolio. Furthermore, Exide’s strategic foresight as an early entrant into the manufacturing of lithium-ion cells and batteries in India, establishes our role as a versatile and forward-looking entity in the industry,” Roy added.

The company started setting up the lithium-ion cell manufacturing plant in 2022. With a total capacity of 12GWh, it planned to build the project in two phases of 6GWh each. After the project’s completion, the company is expected to be one of the leading players in the lithium-ion cell manufacturing space in India.

Exide injected Rs 1285 crore as equity investment into EESL last fiscal. It has partnered with leading global lithium-ion cells and battery manufacturing company SVOLT Energy Technology for technical know-how and completion of the project on a turnkey basis.

Notably, electric vehicle sales in India have experienced significant growth over the past two years. Two-wheeler manufacturers have initiated electric two-wheeler production, while four-wheeler automotive companies are gearing up to operationalise EV capacities at a large scale in the next two to three years. And this presents a significant opportunity for lithium-ion batteries within the automobile sector.

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