India’s Tata Group has reached a preliminary agreement to construct a lithium-ion cell factory in Gujarat, India, as part of its commitment to bolster the electric vehicle (EV) supply chain and reduce reliance on battery imports. With an investment of around 130 billion rupees ($1.58 billion), this initiative aligns with India’s target of achieving 100% EV adoption and reducing carbon emissions by 50% by 2030.
The memorandum of understanding, signed between Tata’s subsidiary Agratas Energy Storage Solutions and the Gujarat government, outlines the establishment of the EV battery plant in Sanand, Gujarat. Construction is expected to begin within three years, starting with an initial manufacturing capacity of 20 Gigawatt hours (GWh), which can be doubled in subsequent expansions.
This pioneering project, with an initial investment of $1.6 billion, will be India’s first gigafactory for lithium-ion cell manufacturing. The establishment of this facility will enable domestic production of batteries, a critical component for electric vehicles. The state government’s press release emphasizes that the plant is anticipated to create employment opportunities for over 13,000 individuals, fostering economic growth in the region.