Tata Group join hands with Gujrat for construction of Rs13000-crore EV battery plant

On Friday, the Tata Group and the Gujarat government entered into an outline agreement for the construction of a lithium-ion cell facility with an estimated investment of Rs 13,000 crore ($1.6 billion). India is making the move in an effort to build its own

electric vehicle

Tata Motors already operates a facility in Sanand and has also bought the Ford Motors plant that is nearby. The two factories' integration process has started, and it might take up to a year to finish. Work on the project is anticipated to begin in less than three years, according to a joint statement on the memorandum of understanding (MoU) between the Gujarat government and Tata's company Agratas Energy Storage Solutions. The announcement stated that it will initially have a manufacturing capacity of 20 Gigawatt hours (GWh), which could be expanded twofold in a subsequent stage.

In less than three years, construction on the facility will begin. Earlier this week, the Tata Sons' board of directors declared the decision on the factory. The second phase of expansion to quadruple the manufacturing capacity

JLR said in April that it would spend about $19 billion over five years to rebrand itself as a contemporary and electric-first automaker. The state's reliance on lithium-ion batteries will rise dramatically as EV usage rises, according to the statement.

The statement said, "This project will assist in developing a lithium-ion cell manufacturing ecosystem in the state." Jaguar Land Rover (JLR), a Tata Motors affiliate, unveiled its electrification strategy in April. As part of its ambition to redefine itself as an electric-first and contemporary automaker, JLR announced it will invest £15 billion (almost $19 billion) over the next five years. The JLR facility in Wolverhampton, UK, which presently manufactures Ingenium internal combustion engines for its cars, will construct electric drive units and battery packs for its next-generation vehicles as part of this strategy.

According to sources, a new battery facility from the Tata family may be built in the UK or another European country. The precise site has not yet been determined. British Prime Minister Rishi Sunak and Tata Group Chairman N Chandrasekaran are reportedly planning to meet shortly. India's automobile market is small in relation to the country's population. EV sales, which made up barely 1% of India's total automobile sales last year of roughly 3.8 million, are dominated by Tata Motors.