Foxconn is likely to open its second-largest battery plant in Tamil Nadu

The Tamil Nadu government has approached the company with a proposal to offer 200 acres of land for the plant and incentives as talks reach final stages

Foxconn, India’s largest contract manufacturer, is expected to establish the world’s second-largest Battery Energy Storage System (BESS) in Tamil Nadu. According to The Economic Times, the Tamil Nadu government has proposed offering 200 acres of land for the project as part of its engagement with the company.

 

“The Tamil Nadu government has also given Foxconn an incentive package,” an official told The Economic Times. “Foxconn is yet to finalise but the talks are in the final stages and Foxconn is likely to go ahead with the project at the identified land in Tamil Nadu, in line with what was mentioned by Chairman Young Liu on his India visit,” the official said.

 

Foxconn eyes Tamil Nadu expansion

 

The Tamil Nadu government has proposed land to the Foxconn near Manalur in Tiruvallur district, about 50 km north Chennai. 

 

According to the news report, Young Liu visited India in August 2024 and discussed Foxconn’s plans to expand its operations in the country beyond smartphones. He turned the company’s focus on sectors such as electric vehicles (EVs), energy, and digital health. Regarding energy, Liu emphasised Foxconn’s interest in batteries as part of its broader EV strategy. “We are eager to bring our 3+3 future industry initiative to India,” he said during his last visit to India, adding that he had been in talks with the Minister for Industries in Tamil Nadu about potential collaboration on Battery Energy Storage Systems (BESS).

 

Foxconn targets EV battery boom

 

As part of its ‘3+3 strategy’, Foxconn has identified three key industries — electric vehicles, digital health, and robotics — each offering substantial growth potential. These sectors currently represent a market valued at $1.4 trillion, with a projected compound annual growth rate exceeding 20 per cent.

 

Foxconn’s battery storage efforts are primarily geared toward the electric vehicle market. On November 14, Chairman Young Liu provided an update on the first battery energy storage system (BESS) unit in Taiwan. “We are nearing the completion of our manufacturing plant for battery and energy storage,” Liu stated during the investor conference call for the company’s third-quarter results. “However, due to the impact of several typhoons this year, we expect that official mass production will be delayed until the first quarter of next year.”