Mahindra & Mahindra (M&M) has tied up with Korean battery manufacturer, LG Chem, to develop an advanced Li-ion battery for the Indian market. LG Chem will also supply Li-ion cells based on nickel-manganese-cobalt chemistry (NMC), which will be deployed in the Mahindra and SsangYong range of electric vehicles. M&M currently uses lithium iron phosphate (LFP) batteries in its electric vehicles. The NMC batteries it plans to deploy are preferred over LFP batteries due to their high energy density or ability to store more energy in each battery. Hemant Sikka, president and chief purchase officer, M&M, said, “This association with LG Chem will give Mahindra the requisite access to advanced battery technology and will also enable us to deliver globally competitive products. At Mahindra, we are preparing to scale up in accordance with our expansion plans to meet the demand expected in the near future.”
The company plans to invest about Rs 900 crore in electric vehicles over the next four years to ramp up capacity to 5,000 units per month from the present 400 units. Of the planned outlay, rs 500 crore will be invested in Maharashtra and rs 400 crore in Karnataka. Apart from electric vehicles, the company also has a battery module plant under development. The plant will have a capacity of half a million battery modules per year and will also house a battery module pack line. The entire facility for both the module and pack is expected to go into production in the last quarter of the financial year ending in 2020.
M&M currently manufactures four electric vehicles for the Indian market: The e2oPlus hatchback, the eVerito sedan, the eSupro minivan and the e-Alfa Mini electric rickshaw. Apart from the existing models, the company also plans to introduce electric variants of its utility vehicles very soon. It is expected to start with the KUV 100, which may be launched next fiscal. Pawan Goenka, managing director, M&M, said, “The Mahindra Group along with Mahindra Electric is at the forefront of promoting electric mobility which could result in a paradigm shift in the passenger commuting segment, considerably mitigating air pollution.”