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Tata Group's Mega Investment of Rs 13,000 Crore to Establish Lithium-Ion Cell Manufacturing in Gujarat

Tata Group's Lithium-Ion Cell Factory to Drive Electric Mobility in India

3 June 2023


Kunal Tyagi

India produced 3X more unicorns than China in 2022.png
  • Tata Group plans to establish a lithium-ion cell manufacturing giga factory in Gujarat with an initial investment of Rs 13,000 crores.

  • The factory will have a capacity of 20 gigawatts (GW) and will support India's growing demand for lithium-ion batteries.

  • The project aligns with Prime Minister Narendra Modi's goal of achieving 100 percent EV adoption and reducing carbon emissions.

Tata Group, one of India's largest conglomerates, has unveiled its ambitious plan to establish a state-of-the-art lithium-ion cell manufacturing giga factory in Gujarat. This visionary endeavor is being spearheaded by Tata Group's subsidiary, Agratas Energy Storage Solution, and has received the seal of approval in the form of a Memorandum of Understanding (MoU) with the Government of Gujarat on Friday, June 2.

According to an official statement released by the Gujarat government, the project will kick off with an initial investment of Rs 13,000 crores (equivalent to USD 1.8 billion) in its first phase. With a prodigious capacity of 20 gigawatts (GW), the factory is poised to make a substantial impact on fulfilling India's escalating demand for lithium-ion batteries.

Through the establishment of this cutting-edge manufacturing facility, Tata Group aims to bolster the country's transition towards embracing electric mobility and renewable energy sources. The plant's presence will play a pivotal role in propelling the growth of the electric vehicle (EV) industry while simultaneously generating direct and indirect employment opportunities for over 13,000 individuals.

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This significant development is a direct reflection of Prime Minister Narendra Modi's visionary goal to achieve 100 percent adoption of electric vehicles (EVs) and reduce carbon emissions by 50 percent by 2030, ultimately working towards attaining net-zero carbon emissions. The investment by Tata Group perfectly aligns with the government's overarching vision of establishing a robust electric vehicle supply chain within the country.

The chosen location for the factory is the industrially developed region of Sanand in northern Gujarat, renowned for its well-established industrial infrastructure. In its initial phase, the manufacturing facility will boast an impressive capacity of 20-gigawatt hours (GWh), with plans already in motion to double this capacity during the second phase. The project's overall timeline is set to be completed in less than three years, indicating Tata Group's unwavering commitment to expediting the establishment of this pioneering manufacturing facility.

The significance of this venture extends far beyond its immediate economic impact. As India continues to shift its focus toward electric mobility, the demand for lithium-ion batteries is poised to skyrocket. By manufacturing these batteries domestically, Tata Group aims to diminish dependence on imports and contribute significantly to the growth and development of the lithium-ion cell manufacturing ecosystem within the state of Gujarat. This strategic move will not only bolster local employment opportunities but also strengthen India's position within the global electric vehicle market, solidifying its foothold as a key player in the sustainable transportation revolution.

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