The Gujarat government on Friday announced that the Tata Group will set up a lithium-ion cell manufacturing facility in the state through its subsidiary with an initial capacity of 20 GWh at a cost of Rs 13,000 crore. In the presence of Chief Minister Bhupendra Patel, a Memorandum of Understanding (MoU) was signed between the Government of Gujarat and Agartas Energy Storage Solution, the Tata Group subsidiary.
The CM expressed hope that the manufacturing unit will generate large-scale employment.
In a tweet, he said, “An MoU was signed today between the state government and the Tata Group for setting up the country’s first lithium-ion cell manufacturing giga factory in Gujarat. Under this MoU, which is a fruition of the state’s new electronics policy, in the first phase Rs. A 20 GW plant will be set up with an investment of Rs 13,000 crore, which will generate large-scale employment.
“As the state government commits to a vision to reduce carbon emissions by increasing the production of electric vehicles, reliance on lithium-ion batteries will also increase significantly as EV usage increases. This project will help in establishing a lithium-ion cell manufacturing ecosystem in the state, Gujarat Chief Minister added.
An MoU was signed today between the state government and the Tata Group for setting up the country’s first lithium-ion cell manufacturing giga factory in Gujarat. Under this MoU, which is a fruition of the state’s new electronics policy, in the first phase Rs. A 20 GW plant will be set up with an investment of Rs 13,000 crore, which will be larger than… pic.twitter.com/Xi1gvw2WLD
— Bhupendra Patel (@Bhupendrabjp) June 2, 2023
The manufacturing facility is expected to meet the country’s rising demand for lithium-ion batteries. The announcement comes as the state government is making a significant push for electric mobility under the new Electronics Policy (2022-28).
According to a report by the news agency Reuters, the decision to set up the EV battery plant at Sanand, Gujarat, was taken earlier this week at a Tata Sons board meeting.
The report citing sources close to the development said that Tata Motors already operates a plant in Sanand and has acquired the adjacent Ford Motors plant. The integration of the two factories has begun, and it could take up to a year to complete.
Work on the plant is expected to start in less than three years, the report added.
According to a NITI Aayog and Rocky Mountain Institute report, India’s EV battery market could surpass $15 billion by 2030, reported Bussines Today. Both global players like Foxconn and domestic companies like Amara Raja are entering this market, boosting India’s EV industry.