Representatives from the US-based International Battery Company (IBC) recently held a meeting with Karnataka’s Industries Minister MB Patil to discuss plans for establishing a battery manufacturing plant in the state. The company intends to invest INR 8,000 crore in setting up a non-captive gigafactory for producing lithium nickel manganese cobalt prismatic cells.
During the meeting, IBC requested the Karnataka government to provide 100 acres of land in the Information Technology Investment Region (ITIR) on the outskirts of Bengaluru, according to news agency PTI. The company sees great potential for growth in the electric vehicle (EV) sector and aims to meet the rising demand for lithium cell batteries.
Indicating the need to scale up lithium cell battery production, Minister MB Patil emphasized the growth potential of the EV sector in India. The final decision on IBC’s request and the provision of incentives for the project will be made by Chief Minister Siddaramaiah.
IBC India’s President, Venkatesh Valluri, highlighted that India’s demand for lithium cell batteries is expected to reach approximately 150 gigawatts by 2030, while the current manufacturing capacity stands at only 1.5 gigawatts. This significant demand-supply disparity underscores the urgency of expanding battery manufacturing in the country.
It is worth noting that India currently imports 1,200 tonnes of lithium annually. In Jammu and Kashmir, substantial lithium deposits were recently discovered, potentially positioning India as a leading EV manufacturer globally, according to Roads Transport and Highways Minister Nitin Gadkari.
With the growing number of EVs in India, the battery manufacturing sector has become a focal point of activity. Earlier this year, Ola Electric announced an INR 7,600 crore investment to establish manufacturing facilities in Tamil Nadu over the next five years for batteries, electric vehicles (EVs), and EV components.
Furthermore, officials from EV giant Tesla visited India to explore opportunities for setting up a battery manufacturing plant. Following a meeting with Prime Minister Narendra Modi, Tesla CEO Elon Musk expressed confidence in bringing Tesla to India as soon as possible.
As India’s EV industry continues to expand, the establishment of a battery manufacturing plant by the International Battery Company could significantly contribute to meeting the country’s growing demand for lithium cell batteries and drive the development of the EV ecosystem.
