Exide Industries, India’s major lead-acid battery manufacturer, is looking to manufacture Lithium-ion batteries also know as Advanced Cell Chemistry batteries, according to several local media reports.
To galvanize the domestic EV sector in India, the government introduced a Production Linked Incentive scheme for batteries, among other sectors. Exide is waiting to take the final call after PLI scheme details are cleared.
The state has approved an outlay of Rs181bn ($2.47bn) for the establishment of 50GWh of Advanced Cell Chemistry.
Setting up a lithium-ion battery unit entails huge capital, said Exide’s CEO Subir Chakraborty to media, adding, the feasibility of the project would depend on the future demand for Li-ion batteries. Around Rs7bn is required for each gigawatt-hour capacity cell and one GW plant is very small and uneconomical for the company to foray onto lithium-ion batteries.
Exide has set up a joint venture with a Swiss firm, Lechlance to assemble lithium-ion batteries in India, under Excide Leclanche Energy in Gujarat. The plant, however, does not manufacture cells.