A new joint venture will build Li-ion batteries and energy storage solutions for India’s EV market
India’s battery manufacturer Exide Industries and Switzerland ‘s Leclanché signed the exclusive joint venture (JV) agreement on June 27, 2018. The JV focuses on the country’s transition to green energy and clean transportation. The agreement will also contribute to the development of solutions which will increase renewable energy and reduce India’s dependence on fossil fuels.
Leclanché will provide access to its knowhow and intellectual property for lithium-ion cells, modules and battery management systems, whereas Exide Industries will leverage its sales network and brand.
The JV’s production plant will be located in Gujarat. Exide Industries will be the majority shareholder and Leclanché will be the strategic minority shareholder of the JV. A module and battery pack assembly line is expected to be operational by the second quarter of 2019. The Li-ion cell production plant is anticipated to become operational by mid 2020. In the intervening period, cells will be sourced from Leclanché’s plant in Willstätt, Germany.
The JV will focus on e-transport, stationary energy storage systems and speciality storage markets. In e-transport, the target segment is fleet vehicles including e-buses, e-wheelers and e-rickshaws.
CEO of Exide Industries Gautam Chatterjee said: “Leclanché SA is the perfect partner for us in India. The company brings superior technology, modules and battery management systems, as well as immediate access to engineering resources to build market-ready products.
“This ideally compliments our leading position in the lead acid storage battery market in India and will allow us to take the lead in the lithium-ion battery industry, which is expected to grow significantly in the next few years.
Efforts to develop alternate state-of-the-art technologies such as lithium-ion batteries and energy storage solutions are an important step in tackling the environmental challenges.”
CEO of Leclanché Anil Srivastava said: “It is a huge honour that Leclanché has been chosen by Exide Industries, India’s largest battery manufacturer, to partner with them in their quest to help India achieve its zero emissions goals and reduce the country’s dependence on fossil fuel.
“Exide’s selection of Leclanché as its partner of choice is a testament to Leclanché’s deep knowhow and IP and a significant endorsement of our world-leading cell and energy storage technologies, which are the product of our strong heritage and a decade of investment in lithium-ion R&D and production.
“In a region that is expected to be one of the world’s largest and fastest growing markets for electric vehicles, the JV shall provide Leclanché with giga-scale procurement volumes, which will help reduce costs, and increase recurring annuity revenues, generating recurring stable revenue growth for the company.
This is an important milestone in our stated growth strategy and further evidence that the opportunity for Leclanché is now. We very much look forward to working with Exide Industries in delivering the best that Leclanché has to offer: superior cell technologies, IP and knowhow that combines high quality German engineering and Swiss precision with deep experience in the design and implementation of battery storage solutions.”