Ashok Leyland inks ₹5,000 cr pact with China's CALB for next-gen batteries

Ashok Leyland's partnership with China's CALB will drive next-gen battery manufacturing for EVs and energy storage, with ₹5,000 cr investment

Ashok Leyland has entered into a long-term exclusive partnership with China’s CALB Group to make next-generation batteries, a pact which reflects the improving ties between the two Asian giants.

 

As part of the pact with CALB Group — one of the foremost battery technology companies in China — the Indian automaker will invest over ₹5000 crore over the next seven to ten years in development and manufacturing of next-generation batteries, for both automotive and non-automotive  applications, including energy  storage systems.

 

The Hinduja Group’s flagship company said in a statement released Monday that this will include investment in battery localisation in India. 

 

The move will not only provide for Ashok Leyland and subsidiary Switch’s own electric vehicle portfolio but will also cater to non-captive demand in the entire automotive sector as well as in energy storage sector. 

“Ashok Leyland is committed to shaping the future of sustainable mobility in India in full alignment with the government's vision. Our strategic partnership with CALB is a significant step towards creating a localised battery supply chain in India to accelerate adoption of electric vehicles in India and reduce our dependence on fossil fuels,” said Dheeraj Hinduja, chairman, Ashok Leyland. 

The company said it will also venture into energy storage systems in the later stage.  “In the initial phase, the new battery business shall focus on automotive sector, and then move to non-automotive areas as well, including energy storage systems. A Global Centre of Excellence will be created to serve as a hub for research and development, fostering innovation in battery materials, recycling, battery management systems, and advanced manufacturing processes,” said Shenu Agarwal, managing director and chief executive officer, Ashok Leyland. 

This partnership marks yet another milestone for Ashok Leyland and Hinduja Group’s ongoing commitment towards electrification, with investments across electric vehicles, electric mobility-as-a-service, charging equipment, vehicle financing and leasing, and other areas, the company said in a statement.  The agreements were signed by Agarwal and Jacky Liu, chief executive officer, CALB (HK) Co, in presence of Shom Hinduja, president, Alternative Energy and Sustainability Initiatives, Hinduja Group. 

Ashok Leyland is the second largest manufacturer of commercial vehicles in India, the fourth largest manufacturer of buses in the world, and the thirteenth largest manufacturer of trucks. 

On the other hand, CALB is a global leader in new energy technology. It develops a comprehensive energy operation system with a continuous focus on leading technological innovation and the strength of large-scale intelligent manufacturing. 

  This provides complete product solutions and full life cycle management for the new energy application  market, represented by power and energy storage.