Exide Industries Ltd. has entered into a multi-year agreement with China-based SVOLT Energy Technology Co. Ltd as part of its plan to make electric vehicle batteries in India.
“SVOLT will grant Exide an irrevocable right and license to use, exploit and commercialise necessary technology and know-how owned by them for lithium-ion cell manufacturing in India,” the battery maker said in an exchange filing.
Exide said it is in the process of forming a Special Purpose Vehicle (SPV) by way of a wholly-owned subsidiary for carrying out its lithium-ion cell manufacturing business. The company is in the advanced stages of discussions for finalising the land parcel for this facility.
The battery maker had earlier participated in the Production-Linked Incentives (PLI) scheme for the national programme on Advanced Chemistry Cell (ACC) battery storage, issued by the Ministry of Heavy Industries. The PLI for advanced chemistry cell (ACC) batteries is estimated at ₹18,100 crore.
Exide said SVOLT will also provide the support required for setting up of a green field manufacturing plant on a turnkey basis. The China-based company is engaged in the business of production and development of lithium-ion batteries and battery systems for electric vehicles as well as for energy storage.
“With SVOLT‘s strong technical expertise, R&D capabilities and rich experience in manufacturing lithium-ion batteries, Exide plans to set-up a multi-gigawatt lithium-ion cell manufacturing facility. Spread out across two popular cell chemistries and three cell formats, this unit shall be uniquely placed to cater to the diverse requirements of customers in India,” Subir Chakraborty, MD & CEO of Exide, said.
In December, Exide Industries’ board gave an in-principle approval to set up a greenfield multi-gigawatt lithium-ion cell manufacturing plant in India.
Shares of Exide jumped 2.7% to ₹155.65 in the intraday trade on Friday as against Rs 151.20 at the previous close on the National Stock Exchange.
This comes as the prices of Nickel, which is one of the key ingredients used in lithium-ion batteries, soared 250% earlier this week to surpass the $100,000-per-tonne mark.
The metal hit an all-time high amid concerns about its production due to the ongoing Russia-Ukraine war. Russia is the world’s third-biggest producer of Nickel.
On Tuesday, the London Metal Exchange had to halt nickel trading after three-month contract prices jumped 111% to $101,365 a tonne briefly during the session.
The massive surge in prices is expected to affect electric carmakers. According to Morgan Stanley, the spike in nickel price could alone lead to an average $1,000 increase in the input cost of electric cars, such as Tesla.