Exide reaching out to potential customers for lithium-ion batteries | The Financial Express

Exide reaching out to potential customers for lithium-ion batteries

The proposed gigafactory will produce lithium-ion batteries to suit varied EV and industrial segment requirements.

Exide reaching out to potential customers for lithium-ion batteries
“Full scale production should start from 2025-26. Initially, few months will be required to stabilise the production,” Chakraborty said. (Representative image)

Storage battery major Exide Industries, which expects its lithium-ion cell manufacturing facility in Karnataka to be ready for commercial production in FY25, is already reaching out to potential customers.

Construction activity for the multi-gigawatt-hour lithium-ion cell manufacturing facility has started and senior management level hiring has almost been completed.

The proposed gigafactory will produce lithium-ion batteries to suit varied EV and industrial segment requirements.

“We expect that we would be one of the first players to kickstart multi gigawatt hours of lithium ion facility in the country. This has generated huge amount of interest amongst all the OEMs (original equipment manufacturers) and other players. We have already started the reach-out exercise with potential customers, who are well-known to us because we have been in this market for the last 75 years with lead-acid batteries,” Subir Chakraborty, MD & CEO, Exide Industries, said during the second quarter earnings call.

Also Read: Mother Dairy hikes prices of full cream & token milk

Exide Energy Solutions, the wholly owned subsidiary of the company, conducted the Bhoomi Poojan ceremony of the facility in Bengaluru in September. Production from the plant is expected to start in the latter half of FY25. “Full scale production should start from 2025-26. Initially, few months will be required to stabilise the production,” Chakraborty said.

The cell manufacturing plant is being set up on roughly 80 acres. “In phase I, we will build six gigawatt hours of capacity and in phase II another six gigawatt hours of capacity,” the MD said. Overall capital expenditure plan for this plant is `6,000 crore, of which around Rs 4,000 crore will be spent for phase I, and the balance for phase II.

Exide has entered into a multi-year technical collaboration agreement with SVOLT Energy Technology, a global technology company, that makes and develops lithium-ion batteries and battery systems for EVs as well as for energy storage.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 21-11-2022 at 06:25 IST