India’s Tata Group has reached a preliminary agreement to establish a lithium-ion cell factory, with an investment of approximately 130 billion rupees, as part of India’s initiative to establish a self-sufficient electric vehicle supply chain.
Despite India’s relatively small car market compared to its population, Tata Motors holds the majority of the country’s electric vehicle sales, which accounted for only 1% of the total car sales of around 3.8 million vehicles last year.
The agreement was signed between a subsidiary of Tata, Agratas Energy Storage Solutions and the Gujarat state government and it includes plans to commence construction on the plant in Sanand, northern Gujarat, within the next 3 years.
The factory’s initial production capacity will be 20 Gigawatt hours (GWh), with a potential doubling of capacity in a subsequent expansion phase.
This establishment is expected to significantly contribute to the development of the electric vehicle ecosystem in Gujarat and India, as stated by Vijay Nehra, an official from the Gujarat state government.