Exide’s Cylindrical Cell Lines to Start Customer Sample Deliveries by Q1FY27

Exide Industries Ltd’s lithium-ion subsidiary Exide Energy Solutions Ltd is expected to begin customer sample deliveries from its cylindrical cell lines by the first quarter of FY27, marking an important step in the company’s transition from project execution to customer validation in advanced battery cells.

The company said the prismatic cell line will initiate product trials shortly thereafter. Exide Energy Solutions is also continuing discussions with key OEMs and energy providers to build offtake across end-consumer markets.

The project site is witnessing steady progress. Exide Industries invested another Rs 600 crore in Exide Energy Solutions during the fourth quarter of FY26, taking its total investment during the year to Rs 1,500 crore. With this, Exide’s total equity investment in the subsidiary stands at Rs 4,802.23 crore, including investments made in the erstwhile merged entity Exide Energy Pvt Ltd.

The development is significant as Exide looks to build a domestic lithium-ion cell manufacturing base at a time when Indian automakers and energy storage players are seeking local battery supply chains to reduce import dependence. Exide Energy Solutions is setting up a 12 GWh lithium-ion cell manufacturing facility in two phases of 6 GWh each.

Exide’s lithium-ion project is backed by a technology partnership with China’s SVOLT Energy Technology. Under the agreement, SVOLT is providing technology and know-how for lithium-ion cell manufacturing in India. The collaboration covers cell manufacturing technology that Exide can commercialise in the domestic market. 

The company has also attracted interest from global automakers. Hyundai Motor and Kia had earlier signed a memorandum of understanding with Exide Energy Solutions to source locally produced EV batteries for their India electric vehicle plans, with a focus on lithium-iron-phosphate cells. 

For Exide, the move into cell manufacturing marks a strategic shift beyond its traditional lead-acid battery business. The company is positioning Exide Energy Solutions to cater to electric vehicles and stationary storage applications, two segments expected to drive long-term battery demand in India. 

Battery cells remain one of the most critical and import-dependent components in the EV value chain. Domestic cell capacity is therefore expected to become increasingly important as electric two-wheelers, three-wheelers, passenger vehicles, buses and energy storage systems scale up. 

Exide’s major competitor, Amara Raja is also setting up a lithium-ion cell plant, which will have a manufacturing capacity of 16 GWh and 5 GWh battery pack capacity over the next 10 years. The first phase of the battery pack plant was inaugurated in 2024 and the facility is expected to initially start commercial production of cells based on NMC by the end of 2026.