scorecardresearch

Exide ties up with Chinese firm for lithium-ion cell manufacturing in India

“Additionally, SVOLT will also provide the support required for setting up of a state-of-the art greenfield manufacturing plant on a turnkey basis,” Exide Industries said in a release on Thursday.

Exide ties up with Chinese firm for lithium-ion cell manufacturing in India
SVOLT, headquartered in Changzhou, Jiangsu province in China, will grant Exide an irrevocable right and license to use, exploit and commercialise necessary technology and know-how owned by it for lithium-ion cell manufacturing in India. (Representative image)

Taking concrete steps towards setting up a green-field multi-gigawatt lithium-ion cell manufacturing plant, storage battery major Exide Industries has entered into a multi-year technical collaboration agreement with China’s SVOLT Energy Technology.

SVOLT, headquartered in Changzhou, Jiangsu province in China, will grant Exide an irrevocable right and license to use, exploit and commercialise necessary technology and know-how owned by it for lithium-ion cell manufacturing in India.

“Additionally, SVOLT will also provide the support required for setting up of a state-of-the art greenfield manufacturing plant on a turnkey basis,” Exide Industries said in a release on Thursday.

Notably, the Kolkata-based company’s board of directors had accorded an in-principle approval in December last year to set up a lithium-ion cell manufacturing plant in the country as it has participated in the government’s Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell manufacturing. The company has submitted bids under the PLI scheme for battery manufacturing in the country.

Exide on Thursday said is in the process of forming a Special Purpose Vehicle (SPV) by way of a wholly-owned subsidiary for carrying out the lithium-ion cell manufacturing business. “It is in a fairly advanced stage of discussions for finalising the land parcel for this facility,” the release said.

SVOLT is a global high-tech company and is engaged in the business of production and development of lithium-ion batteries and battery systems for electric vehicles as well as for energy storage. Its product portfolio includes battery materials, cells, modules, packs, and battery management systems as well as energy storage products.

Commenting on the technical collaboration agreement, Subir Chakraborty, MD & CEO, Exide Industries, said with SVOLT‘s strong technical expertise, R&D capabilities and rich experience in manufacturing lithium-ion batteries, the company plans to set-up a multi-gigawatt lithium-ion cell manufacturing facility. Spread out across two popular cell chemistries and three cell formats, this unit shall be uniquely placed to cater to the diverse requirements of customers in India.

Chakraborty, in August this year, had said the company was exploring ‘all the possible options’ to get into cell manufacturing for lithium-ion batteries and awaiting fine print and details of the PLI scheme for manufacturing advanced chemistry cell (ACC) batteries. Minimum investment needed for cell manufacturing facility for lithium-ion batteries would be around $100 million for per giga watt hour (GWh), he had informed.

In a bid to foray into lithium-ion battery systems and energy solutions, eyeing India’s electric vehicle (EV) market, Exide had formed a joint venture with Switzerland-based Leclanché SA in June, 2018. The fully automated lithium-ion battery module and packing facility of the JV company, Exide Leclanche Energy (known as Nexcharge brand), is in Gujarat. It is a 1.5 GWh facility, which has already started production and will be offering energy solutions that are scalable and eco-friendly.

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