Tata Seals EV Battery Power Plant Deal Worth 1.6 Billion Dollars With Gujarat

EV batteries have a bright future in India, as the country gears up to transition from ICE vehicles to battery electric vehicles. With electric vehicles (EVs) becoming more viable the demand for batteries is on a rise. Most of these EV manufacturers were importing EV batteries to begin with. As the demand for EVs increases it becomes more viable for manufacturers to set up battery manufacturing plants in the country. In a similar turn of events Tata Group has inked a deal with the Gujarat government worth 1.6 billion dollars to set up a EV battery plant in the state.

The electric vehicle division of Tata Group is rapidly expanding its footprint in the country with the company planning to introduce more and more EVs in the passenger and commercial segments. To meet the rising demand of EVs the company has decided to set up an EV battery manufacturing plant that could serve on several fronts. The company has inked a deal of around 1.6 billion dollars to set up a lithium-ion manufacturing facility in the state. These Make in India batteries will help develop a supply chain within the country while reducing the dependency on China for the same.

Tata Motors is playing a major role in the transition of the passenger car segment from ICE vehicles to EVs in India. Currently Tata Motors has the biggest EV product portfolio in the country consisting of - Tiago ev, Tigor ev, Nexon EV Prime and Nexon EV Max. The company is looking forward to expanding its EV product portfolio in the country with the introduction of several new products in the coming years. To support this expansion and to meet the increasing demand of EVs in the country the parent company has decided to set up this manufacturing plant in order to facilitate the accelerated adoption of EVs in the country. Last year EVs made up only 1 percent of the total car sales by Tata Motors in the country.

According to the information by a news agency the work on the plant is expected to begin within three years and in the beginning it will have a manufacturing capacity of 20 GWh with the facility to double it in the next phase of expansion.

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

(With inputs from Reuters)