To be located in Sanand, northern Gujarat, the EV battery facility to be developed by Tata Group’s subsidiary Tata Agratas Energy Storage Solutions will have an initial manufacturing capacity of 20GWh, which is expected to be doubled in the second phase
Indian conglomerate Tata Group has signed a memorandum of understanding (MoU) with the Gujarat government to set up a lithium-ion cell manufacturing plant in the Indian state with an initial investment of INR130bn ($1.57bn).
The MoU has been signed by Tata Group’s subsidiary company Tata Agratas Energy Storage Solutions under the newly formulated Electronics Policy of Gujarat.
According to various reports, the electric vehicle (EV) battery manufacturing facility will be located in Sanand, northern Gujarat.
The gigafactory will have an initial manufacturing capacity of 20GWh.
The manufacturing capacity of the facility is expected to be doubled in the second phase of expansion, reported Reuters.
Construction of the EV battery manufacturing plant will commence in less than three years, reported the news agency citing a joint statement on the MoU.
Gujarat Chief Minister Bhupendra Patel tweeted: “As the state government commits to a vision to reduce carbon emissions by increasing the production of electric vehicles, reliance on lithium-ion batteries will also increase significantly as EV usage increases.
“This project will help in establishing a lithium-ion cell manufacturing ecosystem in the state.”
According to the state government, the new facility will be the country’s first lithium-ion cell manufacturing factory.
The plant is anticipated to generate more than 13,000 direct and indirect employment for people.
With the new EV battery facility, the Gujarat government aims to become a leading state in lithium-ion cell manufacturing and receive support in creating a battery manufacturing eco-system in the state.
Earlier this year, Tata Passenger Electric Mobility, a subsidiary of Tata Motors, completed the acquisition of Ford India’s Sanand manufacturing plant in a deal worth INR7.25bn ($87.75m).