Tata Group of India signed a memorandum of understanding with the western state of Gujarat to build a lithium-ion battery cell factory, according to reports.
Reuters reported the investment will be about 130 billion rupees ($1.58 billion), and is part of India’s efforts to create its own electric vehicle (EV) supply chain.
A joint statement between Tata’s unit Agratas Energy Storage Solutions and the state of Gujarat, said work on the plant, to be based in Sanand in northern Gujarat, is expected to start in less than three years.
It would have initial manufacturing capacity of 20GWh, and this could be doubled in a second expansion phase, the statement said.
Tata already operates an EV factory in Sanand, where the cell plant is to be set up. Earlier this year, news emerged that Tata Group was considering building two battery cell plants. One will be in India and the other in Europe.
The European factory is yet to be announced but England has been touted as the likely winner due to high government subsidies. It will make cells for Tata’s Jaguar Land Rover subsidiary.
