IndiasTata Group, a leading multinational conglomerate, has entered into an outline deal to construct a lithium-ion cell factory inGujarat, India. With an investment of approximately 130 billion rupees ($1.58 billion), the plant aims to bolster the countrys electric vehicle (EV) supply chain and reduce its dependence on battery imports. The initiative aligns with Indias goal of achieving 100% electric vehicle adoption and curbing carbon emissions by 50% by 2030.

The memorandum of understanding, signed between Tatas unit Agratas Energy Storage solutions and the government of Gujarat, outlines the establishment of the EV battery plant in Sanand, northern Gujarat. Construction of the facility is anticipated to commence within three years. The initial phase will witness a manufacturing capacity of 20 Gigawatt hours (GWh), with provisions for doubling the capacity in a subsequent expansion.

The collaboration between Tata Group and the Gujarat government aims to accelerate electric vehicle production in the state, contributing to the nations Carbon Emission reduction targets. Gujarat intends to achieve a 50% decrease in carbon emissions and adopt 100% electric vehicles by 2030. The establishment of the battery plant in Sanand will play a pivotal role in achieving these goals, providing a localized and sustainable solution for battery production.