Tata to build Rs.13,000 cr lithium-ion gigafactory in Sanand, Gujarat
Tata Group and the Gujarat government have signed an outline deal for building a lithium-ion cell factory with an investment of about Rs.13,000 crore ($1.6 billion).
A joint statement on the memorandum of understanding (MoU) between Tata’s unit Agratas Energy Storage Solutions and the Gujarat government said that work on the plant was expected to start in less than three years. It would have an initial manufacturing capacity of 20 Gigawatt hours (GWh), which could be doubled in a second phase of expansion, the statement said.
“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,” the statement said.
“This project will help in establishing a lithium-ion cell manufacturing ecosystem in the state,” the statement added.
The decision to set up the EV battery plant at Sanand, Gujarat, was taken earlier this week at a Tata Sons board meeting, sources said. Tata Motors dominates India’s EV sales, which made up just 1 percent of India’s total car sales of about 3.8 million last year.
Sources said another battery plant from the Tata stable could either come up in the UK or in another European destination. The exact location is not yet finalized. According to recent reports, Tata Group Chairman N Chandrasekaran is likely to meet British PM Rishi Sunak soon.
Tata Motors already has a plant operational at Sanand and has also acquired the adjoining Ford Motors’ plant. The process of integration of the two plants has begun and may take up to one year to complete.
[With Inputs from IANS]
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