Tata Group Signs $1.58 Billion Agreement To Establish Lithium-Ion Cell Factory

The Tata Group of India signed an outline agreement on Friday to establish a lithium-ion cell factory for around 13,000 crore ($1.58 billion), as part of the country's efforts to develop its own electric car supply chain.

India's car market is insignificant in comparison to its population. Tata Motors dominated electric vehicle (EV) sales, which accounted for only 1% of India's total automotive sales of over 3.8 million last year.

According to a joint statement on the memorandum of agreement between Tata's company Agratas Energy Storage Solutions and the government of the western state of Gujarat, construction on the project, which will be located in Sanand, northern Gujarat, is slated to begin in less than three years.

During the signing ceremony, Patel expressed the state government's unwavering support for the project's success. This plant will be completely dedicated to the production of lithium-ion cells, which are an essential component in the manufacture of EV batteries.

The first manufacturing capacity would be 20 Gigawatt hours (GWh), which may be increased in a second phase of expansion, according to the announcement.

"The plant will go a long way in contributing to the development of the EV ecosystem in Gujarat and India," Vijay Nehra, an official in the Gujarat state government told Reuters.