Tata Group, one of India's largest conglomerates, has announced its plans to establish a lithium-ion cell manufacturing giga factory in Gujarat. The subsidiary, Agratas Energy Storage Solution, has signed a Memorandum of Understanding (MoU) with the Government of Gujarat to solidify this commitment on Friday, June 2.
As per an official statement from the Gujarat government, the project will entail an initial investment of Rs 13,000 crores (equivalent to USD 1.8 billion) in its first phase.
The factory is projected to possess a substantial capacity of 20 gigawatts (GW), thereby making a significant contribution to India's burgeoning demand for lithium-ion batteries.
By setting up this manufacturing facility, Tata Group aims to support the country's transition towards electric mobility and renewable energy. The plant will contribute significantly to the development of the EV industry and create direct and indirect employment opportunities for over 13,000 individuals.
Morgan Stanley said it has maintained its 'overweight' rating on Tata Motors with a target of Rs 617 per share. The brokerage firm said Tata Group's foray into battery cells will help Tata Motors. It said this plant will provide a stable, secure and cost-effective supply chain, and all of this is critical to maintaining the lead in the Indian EV space.
At present, Tata Motors has the highest market share in the EV passenger car market. It leads in the EV space with 86 percent market share from just two models — Nexon EV and Tigor EV.
The company's move to set up the manufacturing factory comes in the backdrop of Prime Minister Narendra Modi's target to achieve 100 percent EV adoption and reduce carbon emissions by 50 percent by 2030, ultimately working towards net-zero carbon emissions.
First Published: Jun 2, 2023 7:13 PM IST