After partnering with Hyundai and Kia, Exide Industries Ltd is now in talks with electric two-wheelers in the country to supply lithium-ion batteries. The battery maker’s management said they are in discussions with most of the two-wheeler companies developing electric vehicles.
“We are in active discussions with two-wheeler manufacturers who have an electric wheel programme. These discussions are at various stages for the supply of cells,” Exide Energy Solutions Ltd (EESL) Managing Director and Chief Executive Officer Arun Mittal told investors in a post-earnings call.
EESL is a wholly-owned subsidiary of Exide Industries for lithium-ion cell manufacturing. The company is in the process of setting up a giga factory in Bengaluru to manufacture lithium-ion cells. The first phase of the facility is expected to be commissioned in 2025 with a capacity of 6 GWh, which will eventually be ramped up to 12 GWh.
Recently, South Korean automakers Hyundai Motor Co and Kia Corp announced a tie-up with Exide Industries to equip future electric vehicles in the Indian market with locally produced LFP batteries. The companies have signed a non-binding agreement to this effect.
Exide Industries' management did not disclose the names of the two-wheeler companies they are in talks with, citing non-disclosure agreements (NDAs). “Since we have an NDA, I am under constraints to reveal any specific details at this point,” Mittal added.
The company has so far invested Rs 2,300 crore in the lithium-ion cells business. In the current financial year, Exide plans to invest another Rs 1,000 crore in the lithium-ion business subsidiary. These investments are part of the Rs 5,000 crore investment earmarked for the first phase of its lithium-ion cell manufacturing project.
Lithium-ion cell manufacturing is gaining momentum in India, fuelled by the anticipated surge in the demand for electric vehicles and the growing need for battery energy storage systems. Government officials have projected India’s installed battery manufacturing capacity to increase by up to 120 GWh in the next three to four years.
Several companies including Amara Raja Batteries, Ola Electric, ACC Energy Storage, Reliance New Energy Battery Storage and GODI India are also setting up giga-scale battery manufacturing facilities in India.