Exide Industries’ Subsidiary EESL Nears Completion of Lithium-Ion Cell Manufacturing Project.

Storage battery giant Exide Industries is on track to complete the first phase of its greenfield 12-gigawatt lithium-ion cell manufacturing plant in Bengaluru by the end of the current financial year. The project, undertaken by the company's subsidiary Exide Energy Solutions (EESL), is progressing according to schedule.

EESL is in the final stages of establishing the lithium-ion cell manufacturing facility, which comes at a critical time as India's electric vehicle market experiences rapid growth. Exide Industries' annual report for FY 2023-24, released on Thursday, highlighted that EESL has signed a non-binding memorandum of understanding (MOU) with Hyundai Motor and Kia Corporation for strategic cooperation in this expanding market.

EESL's project encompasses the production, assembly, and commercialization of battery modules and packs for both mobility and grid-based applications, catering to the surging demand for lithium-ion batteries and storage solutions.

“Over 300 professionals are actively involved to ensure timely completion of the Bengaluru project. Efforts are underway to attract new customers and secure raw material suppliers, both domestically and internationally,” said Avik Roy, MD & CEO of Exide Industries. “Exide’s extensive legacy in the lead-acid battery sector has firmly positioned the company as a prominent player with a diversified product portfolio. Furthermore, Exide’s strategic foresight as an early entrant into the manufacturing of lithium-ion cells and batteries in India establishes our role as a versatile and forward-looking entity in the industry,” Roy added.

The company began setting up the lithium-ion cell manufacturing plant in 2022, with a total planned capacity of 12GWh, to be built in two phases of 6GWh each. Upon completion, Exide is expected to emerge as a leading player in India's lithium-ion cell manufacturing sector.

Last fiscal year, Exide injected Rs 1,285 crore as equity investment into EESL. It has partnered with global lithium-ion cell and battery manufacturing leader SVOLT Energy Technology for technical know-how and project completion on a turnkey basis.

Electric vehicle sales in India have surged over the past two years, with two-wheeler manufacturers initiating electric vehicle production and four-wheeler automotive companies gearing up to operationalize EV capacities on a large scale within the next two to three years. This growth presents a significant opportunity for lithium-ion batteries in the automotive sector.

HBL