In a move to inch closer to developing its first lithium-ion battery manufacturing plant for EVs in India, Japan’s Suzuki JV invested INR 3,715 crore in the second phase of their battery venture in Gujarat.
As per reports, Japan’s Suzuki Motor Corp. (SMC), Toshiba Corp., and Denso Corp. will jointly invest a sum of INR 3,715 crore. This investment is a part of the larger plan announced by Suzuki last October to invest INR 5,000 crore to build India’s first Li-ion battery manufacturing plant over a period of five years from 2021 -25.
The joint venture, Automotive Electronics Power Pvt Ltd (AEPPL) is currently building the first phase at INR 1,214 crore, and as per reports, the first phase will start production by end of 2020.
AEPPL aims to locally manufacture 30 million lithium-ion cells annually with a production capacity of more than 1GWh.
Suzuki Motorcycle India Pvt. Ltd, SMC’s two-wheeler arm, is already developing a prototype electric scooter for the Indian market and intends to test the vehicle sometime this year.
In addition to AEPPL, other domestic carmakers in India like Mahindra Ltd (M&M) and Tata Motors Ltd (TML) have also teamed up with international players for developing the manufacturing ecosystem for EVs in India. M&M has teamed up with Korea’s LG Chem to develop high energy density lithium-ion cells for local applications and is setting up a plant at Chakan, Pune. Tata Motors is collaborating with group companies including Tata Chemicals Ltd to develop its own lithium-ion technology. TCS Ltd, Tata Power Ltd, and Tata AutoComp Systems Pvt. Ltd is all participating in this initiative.