Battery maker IBC raises $35 mn to fund manufacturing expansion in India

Company says it is developing products are safe at high temperatures and have a longer life

International Battery Company (IBC), which makes rechargeable lithium-ion batteries, said on Thursday it has raised $35 million in a funding round led by RTP Global and attended by Beenext, Veda VC, and strategic Korean and US investors.

IBC said it will use part of the investment to set up a 50 megawatt hour (Mwh) plant in Bengaluru that will make batteries for the Indian market. The company said that its prismatic Li-ion NMC batteries meet the region's requirements of safety in high temperatures and fast charging. The batteries have an extended lifecycle, with a 7- to 10-year warranty.

“…we are setting the pace in the market with precision, innovation, a deep understanding of Indian consumer needs, and a unique product-based approach. We're not just preparing to meet the demand; we're actively shaping the market, driven by an engineering-first mindset and a sustainable product philosophy,” said Priyadarshi Panda, founder and chief executive officer of IBC.

India's electric vehicle (EV) market is expected to account for more than 40 per cent of its automotive market and generate more than $100 billion as revenue by 2030, according to a recent report by Bain & Co. IBC said it is focused on developing batteries for two- and three-wheelers, light commercial vehicles, and farm and industrial equipment.

IBC’s research and development is rooted in the Silicon Valley, United States, with production taking place at a fully operational facility in South Korea. The 50MWh manufacturing facility produces UN-certified prismatic Li-ion NMC batteries, which are already being shipped at volume to India.

The company said the funding will help it to expand its manufacturing capabilities including setting up data systems and the Bengaluru factory that will start production by 2025. The new facility is part of IBC's plan to achieve a production capacity of 10 GWh by 2028.

Nishit Garg, partner on RTP Global’s Asia investment team, said: “Our investment in International Battery Company underscores RTP Global's steadfast and ongoing commitment to sustainable technology investments. It reinforces our strategy of investing in early-stage, innovative ventures and our long-term support for their visionary founders.”