Exide Allocates Additional Rs. 1,400 Cr. for Lithium-Ion Cell Plant
Exide Industries Ltd.’s board has approved an additional investment to complete Phase I of its greenfield Lithium-ion cell facility in Bengaluru, Karnataka. The company will invest Rs. 1,400 crore during the current fiscal year.
Exide’s Bengaluru Lithium-ion cell facility is being built via its subsidiary Exide Energy Solutions Limited (EESL). This facility will have a total capacity of 12 GWh in Lithium-ion cell manufacturing, with Phase-I accounting for 6 GWh of the total capacity.
So far, the company has invested around Rs. 4,802 crore in Phase-I of the project; with the new investment, the total Phase-I project cost will exceed Rs. 6,000 crore.
Phase-I Capacity Allocation and Production Layout
Phase-I’s 6 GWh planned capacity will be split into two different battery production lines of 3 GWh each. One of these production lines will be dedicated to a 3 GWh Nickel Manganese Cobalt (NMC) Cylindrical cell line. These cells are primarily targeted at the two-wheeler market.
Further, another production line will be dedicated to 3 GWh of Lithium Iron Phosphate (LFP) Prismatic Cells. These cells are designed for electric three-wheelers, four-wheelers, and Battery Energy Storage Systems (BESS).
Exide Management’s Insights on Achieving Cost Parity
Speaking on the pricing of these products, Mr Pravin Saraf, Managing Director (MD) and Chief Executive Officer (CEO), EESL, said, “…today, the raw material we are getting is all imported from China. So, the pricing today will definitely be a little higher.”
Mr Saraf further added that the company is targeting to match the cost of the imported cell.
To achieve cost parity, he mentioned, “we are also working with the government to have subsidies and incentives for the localisation of raw material as well as for manufacturing of cells. So, put together, our target will be meeting the landed cost of the imported cell.”
As per the company, there was a change in China’s Value Added Tax (VAT) structure. China’s VAT increased by 3%, and an additional increase of 6% is projected to occur by January next year. Consequently, this will help in achieving cost parity.
About Exide Industries Ltd.: Exide is an Indian battery manufacturer headquartered in Kolkata. Exide has eleven manufacturing facilities across India. Seven out of these eleven facilities manufacture batteries, two facilities manufacture home UPS systems, while the remaining two serve as charging units. The company has a massive automotive production capacity of 66 million battery units annually, alongside its extensive industrial segment.
