As part of India’s electric car supply chain, Tata Group signed an outline deal on Friday to establish a lithium-ion cell facility for 130 billion rupees ($1.58 billion).
India’s car market is small for its population. However, Tata Motors tops India’s electric vehicle (EV) sales, accounting for 1% of last year’s 3.8 million car sales.
The memorandum of understanding between Tata’s business Agratas Energy Storage Solutions, and Gujarat’s government stated that work on the project in Sanand, northern Gujarat, would begin in less than three years.
The announcement said it would first manufacture 20 Gigawatt hours (GWh), which may be doubled in a second phase.
“The plant will go a long way in contributing to the development of the EV ecosystem in Gujarat and India,” Gujarat government official Vijay Nehra told Reuters.
