IBC to set up battery manufacturing plant in Karnataka for Rs 8,000 crore

International Battery Company (IBC) has signed an investment pact worth Rs 8,000 crore ($971.89 million) with the Karnataka government to build a battery manufacturing facility. The development was confirmed by the state’s Minister for Commerce & Industries, Infrastructure, MB Patil in a social media post on Tuesday evening. 

The facility will be spread across 100 acres in the state, he said.

“Proud moment for Karnataka as IBC and the Government of Karnataka join hands with an MOU signing for a groundbreaking investment of Rs. 8,000 Cr to establish a cutting-edge Advanced Battery Manufacturing Facility. Spanning across a sprawling 100 acres in the state, this venture promises to revolutionize the energy storage landscape,” he posted on X, formerly known as Twitter. 

While further details were not furnished by the minister, a report in Bloomberg stated that the factory would produce lithium-ion cells. The plant will be located near Bengaluru, it added. 

The report quoted Karnataka’s Industries and Commerce Department commissioner Gunjan Krishna who told the news site that the company plans to begin production by 2025. They would be eligible for financial incentives after they start production, he said. 

IBC is aiming to start small but ramp up capacity subsequently to 10 gigawatt by 2028, as per the report. 

Meanwhile, the minister last month stated that Foxconn Industrial Internet has proposed an investment of Rs 8,800 crore in the state for a manufacturing plant that would generate over 14,000 job opportunities. Karnataka Chief Minister Siddaramaiah met FII CEO Brand Cheng and his team in July. FII aims to develop high-quality outer covers for iPhones in the plant. “The state is ready to provide full support, offering land required to setup the manufacturing unit, in the 100 acres of land available in the Japanese industrial Park near Tumakuru,” he stated. Foxconn has an iPhone assembling plant in Tamil Nadu’s Chennai.

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