Que: How the joint venture of Exide and Leclanché came into existence to form Nexcharge? To date how much investment has been made in setting up the manufacturing lines?

Ans: During the time of the collaboration, Exide was active in lead-acid batteries and had some first experience with lithium-ion batteries; however, to take the brand a notch above, they decided to look for a technology partnership. At the same time, Leclanché, with almost 15 years of experience in the lithium-ion industry was interested to license its superior technology to Exide, and that's how the joint venture came into existence in 2018. With regards to the investment that has been made in setting up the manufacturing lines, we're north of about Rs 250 crore till date.

Que: Shed some light on Nexcharge’s R&D and manufacturing facility in India. Do you have some export plans as well in near future from this facility?

Ans: Our R&D facility in Bangalore has a headcount of around 50 people, and it is growing as we’re actively recruiting dozens of talents. Additionally, from a global point of view, our manufacturing facility is truly state-of-the-art, highly automated with around 30 robots. We have about six production lines that can handle cells of any form including cylindrical, prismatic, and pouch. We do plan to export as well in the near future as we are in the process of setting up our third business unit for international business. While our initial focus was on the domestic business that is going really well, however, we also have good traction in the global market, starting from San Francisco to Shanghai.

Que: Kindly tell Energetica India readers about the specialty of Nexcharge storage solutions. Will these storage solutions be customized as per the customer’s specific requirements?

Ans: Nexcharge is backed by Exide, which is the largest battery manufacturer in India, and that describes a lot about the positioning of our company. We are targeting high-quality products and have all the certifications in place including the automotive standard (IATF 16949) which is in the pipeline. Additionally, we manufacture at scale, which is important for the battery industry. Currently, our production capacity is more than 1.5 GWh, which is fairly unique in India. Unlike in the lead-acid battery industry, most of our products are not standardized. Lithium-ion batteries are specifically designed for every vehicle, whether it is a two-wheeler or a passenger vehicle. In the industrial market space, we are also making batteries for UPS which are custom designed to meet our customer requirements and that’s why we have a fairly large R&D team with a relatively young organization to meet the specific requirements of our customers.

Que: Shed some light on your target markets?

Ans: Our target markets are quite broad in the transportation industry that includes Two-wheeler, Three-wheeler, Four-wheeler, Commercial Vehicles, Bus and also off-highway equipment such as tractors or Earthmoving equipment. From a stationary point of view, markets are more diverse. We cater to Telecom, UPS, Microgrids, grid storage, Hybrid application such as solar PV, and street lighting among others.

Que: Are there any specific challenges/differences you find while working in the Indian market, as compared to other markets?

Ans: India is a unique market with specific requirements. The composition of the Indian fleet is much different than others. We have more two-wheelers and three-wheelers in India as compared to other countries. The tropical climate and the road quality certainly have an impact on the shock, vibration, and ruggedness of the vehicle. Furthermore, the market is cost-sensitive in India. We had to keep all the criteria in mind before developing the product. I believe once you develop and market a product in India, you can develop and market a product anywhere in the world because India is a market that demands the highest quality at the lowest price, which is a challenge.

Que: Up to what extent government policies like the PLI scheme, RTC renewable tenders, etc are beneficial for Lithium-Ion battery manufacturers like Nexcharge?

Ans: We believe the government is extending its support by paying sufficient attention to the entire lithium-ion battery industry with various schemes and standards including the PLI scheme which they’ve listed this year. Apart from stimulating electric buses, which is, of course, public transport and therefore a responsibility of the government, they are also having other demand generating incentives for two-wheelers and passenger vehicles. Hence, they’re supporting both the consumption as well as the production, which I think is great. While there are some limitations since the resources are expensive, however, the PLI scheme makes a significant difference for people that want to get into battery manufacturing. Since, it is very expensive to get into battery manufacturing, especially if you start thinking about cell manufacturing, but with schemes such as PLI, it becomes achievable.

Que: What will be your key suggestions to the policymakers to boost battery storage in the manufacturing industry in India?

Ans: I was pleasantly surprised to see the level of interaction that policymakers have with the industry. The experience was very positive. In fact, we’ve had several opportunities to share our suggestions with the policymakers, and that’s much appreciated. So far, most of our suggestions have been heard and some of them have made it into the policies and that’s very welcoming. There are several other incentives, including the PLI scheme, which is great for Rs 18,100 crore.

If we look at the rest of the world, we have a lot of catching up to do as some of the countries are about 8 to 10 years ahead of us. For example, the amount of support given by China to their industry is sizable and larger than what India has committed right now. However, India is moving ahead and has made fantastic contributions to support the industry. More importantly, India is transitioning to a sustainable future in terms of transportation and the way we move and consume energy. We are confident that the government will continue to offer the additional support that is required in the future, and we look forward to those initiatives, and being a market leader, we are open to supporting them in the journey.

Que: In March this year, Nexcharge installed India’s first grid-connected Li-ion battery-based Community Energy Storage System (CESS) for Tata Power DDL. Do you think there’s a need to spread more awareness about the benefits of CESS in India? How

Ans: The concept of Community Energy Storage System (CESS) has originated out of the need for T&D companies battling with cash flows. This gives a sustainable business model with the proven economics established through this pilot. There is great traction for this solution with T&D companies. Also, it’s extremely crucial for the energy security of the country. We are also working on concepts to shift nearer towards the point of consumption with smaller systems which can be deployed with individual ownership. This will surely be a way ahead for large ESS deployment in India. We expect this market to grow to 14 GWh by 2027 and 20 GWh by 2030.

Que: As per your estimate, what will be the market size, ability, and battery storage market in India in the next few years?

Ans: By 2030, the battery storage market in India will have a minimum size of 80 GWh and if we continue to have more optimistic scenarios, then the market can grow as big as 160 GWh. However, we feel that it will only come into play, if the government would create certain bands, for example, introducing ICE vehicles into densely populated cities, just like many countries in Europe and Asia had done it. Given that certain cities in India are ranked under the world’s heavily polluted cities, I believe we should follow the example, which will further, stimulate the growth of the lithium-ion battery storage market in the country.