Tata Sons Advances in Lithium-Ion Battery Production with New Sanand Unit

Tata Sons Advances in Lithium-Ion Battery Production with New Sanand Unit

Strategic Land Acquisition for Giga Factory

Tata Sons, through its subsidiary Agratas Energy Storage Solutions, has secured a significant piece of land for its ambitious 130-billion-rupee lithium-ion cell manufacturing giga factory. This development in Sanand, Gujarat, positions Tata at the forefront of India’s growing lithium-ion battery sector.

Proximity to Existing Tata Motors Facility

The acquired land is notably adjacent to Tata Motors’ existing car manufacturing facility in Sanand. This strategic location could foster synergies between the two operations, enhancing efficiency and integration.

Memorandum of Understanding and Investment Plans

Agratas Energy Storage Solutions had previously signed a memorandum of understanding with the Gujarat government in June to establish the lithium-ion cell plant. The project’s first phase involves an investment of 30 billion rupees with an annual capacity of 20 GWh.

State Government’s Role and Lease Agreement

The Gujarat government has identified and allocated 2.25 million square meters of land, valued at 11.6 billion rupees, for this project. Agratas Energy is expected to lease this land for 50 years at an annual rent of 695.2 million rupees.

Tata’s Expanding Footprint in Sanand

Currently, Tata Motors operates two subsidiaries in Sanand, with significant investments and production capacities for vehicles, including electric models. The new lithium-ion cell unit is poised to complement these operations, potentially supplying batteries for electric vehicles produced in Sanand.

Potential Future Investments in Dholera

Tata Chemicals Ltd, another Tata Group company, has plans for a 10GWh lithium-ion battery and recycling plant in Dholera. The state government remains optimistic about further investments in the Dholera Special Investment Region.

Market Response and Future Prospects

Following this news, Tata Motors’ and Tata Chemicals’ shares witnessed a positive uptick on the National Stock Exchange. This investment in Sanand underscores Tata’s commitment to advancing in the electric vehicle and battery production domains, marking a significant step in India’s technological and industrial growth. icon

    Subscribe to the most timely news about the metals market

    Metals Wire's weekly digest for mining and processing industry professionals, investors, analysts, journalists.