Mahindra & Mahindra is scouting for partners to localise battery cells in India and is actively evaluating “cell localisation,” said Rajesh Jejurikar – ED and CEO, Auto and Farm business at Mahindra & Mahindra.
Speaking to analysts post the Q4 FY24 earnings announcement, Jejurikar said, “We will evaluate cell localisation. We wouldn't do it alone. We would do it in a partnership. And there could be multiple constructs to that partnership. But it is something that we are very actively looking at. It certainly won't be a full investment by us. It will be with multiple sets of strategic or financial investment options.”
Once the partner is finalised, M&M will invest additional money into the cell localisation initiative beyond the Rs 12,000 crore lined up for investment in its EV business – Mahindra Electric Automobile Limited or MEAL. However, the investment will be shared by Mahindra and its prospective partner, upon finalisation of the same.
M&M has already signed a commercial agreement with Volkswagen Group to source unified cells that will power its upcoming Born EV range. The partners have shared that both the companies are exploring a wide range of subjects from cell localisation to joint vehicle architecture development for compact EVs, but nothing has been finalised beyond the sourcing of the motor and batteries from the German automaker.
Interestingly, M&M will be sourcing battery cells from companies like BYD, Ferasus, LG Chem beyond VW to broad base its supply base to power future EVs.