Exide Begins Work on Rs. 6,000 Cr. Greenfield Li-ion Cell Manufacturing Unit
Exide Industries Ltd., an Indian battery manufacturer catering to the automobile and the industrial sector, will be investing about Rs. 6,000 crore over a period of the next 8-10 years to develop a 12 GW-hour Lithium-ion cell manufacturing unit in Karnataka.
On 27th September, the company performed Bhoomi Poojan for the first phase of this unit, which will come up at Hi-Tech Defense & Aerospace park Phase-2, Bengaluru.
Specifics of Exide’s Upcoming Greenfield Li-ion Cell Project
Phase–I of Exide’s Upcoming Giga-scale Li-ion Cell Factory to Start Production by 2024-end
Exide’s upcoming Li-ion cell factory will be developed in two phases. The first phase entails an investment of about Rs. 4,000 crore out of the total amount. Phase–I will have a production capacity of 6 GW-hour, and it is expected to commence production in the coming 27 to 30 months. After Phase–I is ready, the company will develop the second phase of this Li-ion cell factory.
This factory will be developed by Exide Industries’ wholly-owned subsidiary, Exide Energy Solutions Limited (EESL). In July EESL executed the lease cum sale agreement with Karnataka Industrial Areas Development Board (KIADB) for an 80-acre land parcel in Bengaluru, on which both phases of this project will be developed.
Internal Accruals to Fund Exide’s Greenfield Project and Future Revenue Target for this Project
Talking about the arrangement of funds for development of this new unit, Mr. Subir Chakraborty, MD and CEO, Exide said, “We are a debt-free company and have sufficient reserves. So we will look at internal accruals and some bridge loan facilities from banks as and when required”. Mr. Chakraborty was addressing the media after the company’s 75th Annual General Meeting on 22nd September 2022.
Mr. Chakraborty further said, “It is difficult to say what percentage of the business lithium ion can comprise as the lead acid business will also be growing. But once the plant becomes fully functional, it has the potential to generate ₹10,000-12,000 crore”.
SVOLT to Provide Technology and Support for Exide’s Bengaluru Li-ion Cell Plant
Exide has entered into a multi-year agreement with China-based SVOLT for technical collaboration. As per this agreement, SVOLT will be giving Exide the irrevocable right to use, exploit and commercialise the former’s technology and know-how for manufacturing Li-ion cells in India. In addition to its technology, SVOLT will be providing its support on a turnkey basis for setting up Exide’s upcoming unit in Karnataka.
Exide’s Existing Lithium-ion Cell Portfolio
In May 2022, Exide Leclanche Energy Private Ltd. (Nexcharge), which is a joint venture between Exide and Switzerland-based Leclanche SA, started production of Li-ion battery packs and modules at its unit in Gujarat.
This plant has a capacity of 1.5 GWh, which produces batteries for Electric Vehicles and energy storage systems.
About Exide: Exide Industries Ltd. is an Indian battery manufacturer headquartered in Kolkata. Exide has nine manufacturing facilities across India. Seven out of these nine factories manufacture batteries, while two facilities manufacture home UPS systems. The company has a production capacity of about 8 million automobile battery units annually.