China’s $2 billion Tianjin Lishen Battery Joint-Stock Co has entered into an agreement with Munoth Industries to buy polymer and prismatic cells.
Tianjin Lishen will buy at least 50% of the cells produced by Munoth Industries, which is setting up a lithium cell manufacturing facility near Tirupati, for supplies to its India customers.
“We have intended to work together and help them set up the factory over there. We will buy cells from our partner’s factory, which will start production by next June or July, for our local customer demand in India,” said Kevin Wang, president, Tianjin Lishen, speaking to TOI over the phone from China.
Tianjin Lishen, with an installed capacity of 10 GWH, produces cells and battery pack for communication devices, energy storage and electric vehicles and its customers include Apple, Foxconn, Daimier, Volkswagen and Hyundai.
It will offer technology to produce polymer and prismatic cells and help Munoth Industries to run the assembly line as well.
This is agreement assures Munoth of firm market supply and Lishen will avoid paying up 5% import duty, which is now slapped on cell imports into India.
“As a new entrant, established mobile brands may not be as keen to source from us, as they do from existing manufacturers, globally. Through Lishen, our products will reach these brands and help establish ourselves in the long run,” says Jaswant Munoth, director, Munoth Industries.
Munoth Industries is investing close to Rs 800 crore for setting up the lithium cell manufacturing plant in EMC 2 in Tirupati. The plant will have a capacity of 1.25 GWh after all three phases are completed.