 "Lithium-ion cells")
Agartas Energy Storage Solutions, a fully owned subsidiary of the Tata group, is closing in on Sanand in Gujarat to set up its first lithium ion cell plant with a capacity of 20 GWh annually.
The investment tag for the project, for which an MOU has been signed with the Gujarat government, stands at Rs 13,000 crore. A top Gujarat government official confirmed the decision, saying: “Yes, they are planning to set up the plant in Sanand which is also where Tata Motors has a big play.”
The official said that Tata Chemicals had earlier wanted to set up a lithium ion battery and recycling plant with a capacity of 10 GWh in Dholera on around 137 acres but in the end, no firm land deal was signed. Now, the Tatas have set up Agartas, which will be the vehicle for channelising Tata’s investment in electric vehicle (EV) batteries. A Tata group spokesperson declined to comment on the issue. This will be Gujarat’s second big investment in the electric vehicle battery space. Suzuki Corporation is investing over Rs 7,000 crore to set up an electric vehicle battery plant in Hansalpur.
Sanand came into the limelight in 2008 when Tata decided to move its greenfield Nano plant there from Singur in West Bengal after facing opposition from chief minister Mamata Banerjee. The city is now a bustling industrial centre and has even attracted American chip maker, Micron, the fifth largest semiconductor company in the globe, to acquire land to set up its ATMP plant with an investment of $2 billion. Micron has bought 93 acres and is expected to produce the country’s first ‘Made-in-India’ chips by December 2024.
The industrial estate has many other big plants belonging to Nestlé, Hitachi, Piramal Pharma, General Electric, Coca Cola, Colgate Palmolive, Procter & Gamble, Marico, etc.
Tata Motors is spread over 1,100 acres, which includes its vendor park and will be expanding its capacity with the recent acquisition of the Ford auto plant, also located there.
The Ford plant will add another 460 acres of land for the Tatas. Analysts say that setting up an EV battery cell plant near the plant from where many of the electric cars will roll out makes eminent sense. Currently, Tata makes the Tigor EV and according to reports will be using the Ford plant as a hub to make EVs.
The Tata group has also announced plans to set up a global battery cell gigafactory to produce 40 GWH of cells annually in the UK at an investment of GBP 4 billion. The proposed plant, which will be the largest battery cell manufacturing facility in the UK, will be anchored by its own captive requirement from Jaguar Land Rover.
Expanding Footprint
· Sanand is already a key manufacturing centre for Tata Motors and will be expanded with the acquisition of the Ford plant nearby
· The company already manufactures the Tigor EV in this plant. There have been reports that the Ford plant could be made into an EV manufacturing hub
· Large part of the battery capacity could be then used for captive requirements
· For Gujarat, this is its second electric vehicle battery plant - Suzuki has announced on its own a Rs 7,000 crore investment in Hansalpur.
· Maruti Suzuki chairman R.C Bhargava says entire capacity can be used by Maruti Suzuki for its EV needs
· Suzuki-Toshiba and Denso also have a JV which makes electric batteries, including those for hybrid cars in Hansalpur
