Exide Industries Ltd has announced a significant investment of approximately Rs 1,000 crore in its subsidiary, Exide Energy Solutions Ltd (EESL), during the current financial year. This investment is part of a larger Rs 5,000 crore plan earmarked for the first phase of its ambitious lithium-ion cell manufacturing project.
EESL, established in 2022, marks Exide Industries’ strategic move into the lithium-ion cell business. The company is currently setting up a giga plant in Bengaluru with a capacity of 12 GWh, under EESL. The first phase, with a capacity of 6 GWh, is slated for completion in 2025.
To date, Exide Industries has invested Rs 2,300 crore in the lithium-ion cells business. “As of now, we have invested Rs 2,000 crore in EESL. Earlier, we invested Rs 300 crore in the pack and module-making unit. So, put together, it comes to around Rs 2,300 crore. The total investment for phase one will be approximately around INR 5,000 crore,” said Exide Industries’ Director of Finance and CFO, Asish Kumar Mukherjee, during an investor call.
The funding for this expansive project is being sourced through internal accruals and loan financing. The first phase’s 6 GWh capacity will be evenly split between Nickel Manganese Cobalt (NMC) batteries and Lithium Iron Phosphate (LFP) batteries.
EESL boasts a robust team of over 300 professionals across key functions such as sales, manufacturing, procurement, R&D, IT, finance, quality, and safety for the lithium-ion cell business. Additionally, EESL operates a lithium-ion pack and module facility in Prantij, Gujarat, with a capacity of 1.5 GWh.
Exide Industries has formed a strategic partnership with China-based SVOLT Energy Technology Co Ltd, which specializes in developing and manufacturing lithium-ion batteries and storage solutions for various applications. This partnership grants Exide Industries the rights to utilize and commercialize SVOLT’s technology and know-how for lithium-ion cell manufacturing.
In a recent development, South Korean automakers Hyundai Motor Co and Kia Corp have teamed up with Exide Industries to equip their future electric vehicles in the Indian market with locally produced LFP batteries.
This substantial investment and strategic partnerships underscore Exide Industries’ commitment to advancing its position in the lithium-ion cell market and supporting the growing demand for electric vehicles in India. The company’s forward-looking approach and robust investment plans are expected to significantly bolster its market presence and contribute to the broader adoption of electric mobility solutions.
