Tata Group to set up Rs 13,000-crore lithium-ion cell unit in Gujarat

Tata Group will set up a lithium-ion cell manufacturing facility in Gujarat through its subsidiary with an initial capacity of 20 GWh at a cost of Rs 13,000 crore, the Gujarat government said in a statement on Friday.

Tata Group subsidiary Agratas Energy Storage Solutions Pvt Ltd has signed a memorandum of understanding with the Gujarat government under the new Electronics Policy (2022-28) in this regard.

In presence of Gujarat Chief Minister Bhupendra Patel the Memorandum of Understanding (MoU) was signed between the Tata Group and the Government of Gujarat.

This MoU establishes the foundation for the creation of a gigafactory dedicated to lithium-ion cell manufacturing.

The MoU was signed by Vijay Nehra, the Secretary of Science and Technology, Government of Gujarat, and Rakesh Ranjan, the CEO of Agratas Energy Storage Solutions Pvt Ltd, a subsidiary of the Tata Group.

During the signing ceremony, Patel conveyed the complete support of the state government in ensuring the success of this project. This factory will be solely dedicated to the manufacturing of lithium-ion cells, a crucial component in the production of EV batteries.

The plant is likely to reduce dependency on battery cell suppliers from countries like China and South Korea.

"This initiative by the Tata Group to establish the Giga Factory marks a significant milestone for Gujarat, as it will not only create India's first lithium-ion cell manufacturing plant but also position the state as a prominent player in this industry," he said.

The plant's production capacity of 20 GWh and the substantial initial investment of approximately Rs 13,000 crore will contribute to the development of a thriving battery manufacturing ecosystem in Gujarat, said the state.

Moreover, the establishment of this gigafactory aligns with the state's ambitious goals of achieving 50% carbon emission-free energy and 100% electric vehicle adoption by 2030.

The venture is expected to generate significant employment opportunities, both directly and indirectly, benefiting over 13,000 individuals and further contributing to the state's economic growth.

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