Exide to Invest Additional INR 1,400 Crore in Bengaluru Lithium Ion Cell Plant

Exide Industries plans to invest an additional INR 1,400 crore during the current fiscal in its lithium ion cell manufacturing facility at Bengaluru, taking the total investment in the project to around INR 6,000 crore.

This was revealed by Managing Director and CEO Avik Roy following the company's annual general meeting held recently. The first phase of the Bengaluru facility has an installed manufacturing capacity of 6 GWh and is expected to begin generating revenue from the third quarter of the current fiscal, Roy said.

Initially, the company will use the domestically manufactured lithium iron phosphate (LFP) cells to replace imported cells at its Gujarat battery pack facility, which supplies battery packs for the electric three wheeler segment. By the end of the fiscal, Exide also expects to commence supplies for select electric two wheeler battery pack applications and nickel manganese cobalt (NMC) cells for original equipment manufacturers (OEMs), subject to homologation and regulatory approvals.

Exide expects to utilise around 3 GWh of the first phase capacity during the current fiscal. The qualification process for passenger vehicle battery cells is also underway as the company prepares to expand its presence across multiple electric mobility segments.

Roy described the lithium ion business as a strategic transformation for the company while reaffirming Exide’s continued commitment to its conventional lead acid battery business. The company has earmarked more than INR 400 crore for investments in its lead acid operations during the current fiscal.

Exide is targeting revenue of INR 20,000 crore by FY28, compared with its current annual revenue of INR 17,200 crore.

Highlighting the growth potential of domestic battery manufacturing, Roy said that India's lithium ion cell demand currently stands at around 20 GWh and is almost entirely met through imports despite the rapid expansion of the country's electric mobility market. He added that domestic demand is projected to increase to about 130 GWh by 2030, with nearly 100 GWh expected to come from the electric vehicle segment alone.