Ashok Leyland partners with China’s CALB to manufacture next-gen batteries

Inking a new long-term partnership, the two Asian giants, Ashok Leyland and China’s CALB Group, have come together to manufacture next-gen batteries.

Under the agreement, Ashok Leyland, in a course of 7-10 years, will invest around ₹5000 crore in the manufacturing and development of next-gen batteries suitable for application in the automotive and non-automotive industry, including energy storage systems.

The Hinduja Group’s flagship company said in a statement on Monday that this will include investment in battery localisation in India.

Citing Dheeraj Hinduja, Business Standard reported, “Ashok Leyland is committed to shaping the future of sustainable mobility in India in full alignment with the government's vision. Our strategic partnership with CALB is a significant step towards creating a localised battery supply chain in India to accelerate the adoption of electric vehicles in India and reduce our dependence on fossil fuels.”

Later on, the company plans to expand into energy storage solutions as well. Business Standard reported, “In the initial phase, the new battery business shall focus on the automotive sector, and then move to non-automotive areas as well, including energy storage systems. A Global Centre of Excellence will be created to serve as a hub for research and development, fostering innovation in battery materials, recycling, battery management systems, and advanced manufacturing processes,” Shenu Agarwal, chief executive officer and managing director of Ashok Leyland, stated. 

According to the company’s statement, the investment in the partnership will span various categories, including electric mobility-as-a-service, vehicle financing and leasing, electric vehicles, and others.  

Agarwal and Jacky Liu, chief executive officer from CALB (HK) Co. and Shom Hinduja, president of Alternative Energy and Sustainability Initiatives from Hinduja Group, signed the agreement 

Ashok Leyland is the world's fourth-largest bus manufacturer, the thirteenth-largest truck manufacturer, and the second-largest commercial vehicle manufacturer in India.

Meanwhile, CALB is a world leader in the field of new energy technologies. With a constant focus on cutting-edge technological innovation and the power of large-scale intelligent production, it creates a comprehensive energy operation system, Business Standard reported.