Ashok Leyland
Ashok Leyland Limited, the leading company of the Hinduja Group, has taken a big step towards making a battery. The company has entered into a 20 -year agreement with China’s third largest battery manufacturer CALB Group. The purpose of this partnership is to gradually understand the lithium-ion battery technology in India and develop it at the domestic level.
Battery imports will start from China
Ashok Leyland CEO Shaneu Aggarwal said that in the initial phase the company would ask for a battery cell from China and learn the technology to pack them. After this, the capacity of battery design and manufacturing will be developed in India itself. According to Aggarwal, if 70 percent of our EV parts come from outside, then we cannot be called a real EV company. Therefore it is important to understand the battery value chain.
Investment of 50 billion rupees
The Chennai -based company has planned to invest 50 billion rupees (about $ 563 million) in the next 7 to 10 years. Through this, the next generation batteries will be made, which can be used not only in vehicles but also in big projects like grid-storage. The demand for battery in India is increasing rapidly. According to BloombergenEF estimate, by 2035, the demand for battery here may increase by 19 times. In such a situation, India can become the third largest battery market in the world.
Why is it important partnership with China
Aggarwal says that battery technology is a complex process and it needs patience. Right now there is no technique of cell manufacturing in India. China is far ahead in this region and the companies there mastered battery production. He said, initially it is necessary to learn more processes than technology. The battery is still like a black box, which will take time to understand.
Other Indian companies are also looking for opportunities
Experts say that India’s growing EV market and energy storage sector is a big opportunity for Chinese companies. This is the reason that companies like Reliance, Adani and JSW Group are also exploring possibilities of partnership with Chinese companies regarding battery technology.
plan ahead
Ashok Leyland aims to make battery packs not only for her trucks and buses but also for two-wheeler, three-wheeler and grid storage in the coming 2 to 3 years. Along with this, there is also a plan to create a research and development hub in India, where work will be done on battery innovation and material science.
The company’s final goal is to develop lithium-ion cell designs and developed in India in the next five years. Aggarwal says, our phased strategy will make us in a strong position better than the companies which are getting into sale manufacturing in a hurry.