The Tamil Nadu government has offered Foxconn approximately 200 acres of land for its proposed Battery Energy Storage System (BESS) plant, as reported by The Economic Times. This facility would be Foxconn's second such unit globally, with the first located in Kaohsiung, Taiwan.
Discussions between the Tamil Nadu government and Foxconn are in the final stages, with the company likely to proceed with the project near Manalur in Tiruvallur district, about 50 km north of Chennai. The state has also extended an incentive package, though details have not been disclosed.
Foxconn Chairman Young Liu, during his visit to India in August, hinted at expanding beyond smartphone manufacturing. He highlighted plans to explore sectors like electric vehicles (EVs), energy, and digital health, stating, "We are waiting to put our 3+3 future industry in India," referencing a strategy focusing on EVs, digital health, and robotics.
Foxconn's first BESS unit in Taiwan supports its EV business. The company is also developing solid-state battery ecosystems for electric two-wheelers in Indonesia. BESS technology is crucial for storing renewable energy from sources like solar and wind.
Foxconn aims to align its battery and energy projects with its broader EV strategy. In a recent investor call, Liu revealed that mass production at the Kaohsiung plant has been delayed to early 2024 due to weather disruptions.
The Tamil Nadu government actively seeks investments in advanced manufacturing and green energy. Foxconn's potential BESS unit would align with the state's goal of fostering innovation in sustainable industries.
Queries to Foxconn and the Tamil Nadu government remained unanswered as of Tuesday, but sources suggest a formal announcement could be expected soon. This move reflects Foxconn's strategy to expand its footprint in India while diversifying into industries with high growth potential.