- 05 Jun 2023
- ICICI Securities
Tata Group signs Rs13000 crore EV battery plant deal with Gujarat
TATAPOWER - 428 Change: -1.35 (-0.31 %)News: The Tata group signed an outline deal with the Gujarat Government on Friday on building a lithium-ion cell factory with an investment of about Rs 13000 crore. It would have an initial manufacturing capacity of 20 Gigawatt hours (GWh), which could be doubled in a second phase of expansion. The work on plant is expected to start in less than three years.
Views: A lithium-ion battery takes around 9.3% electrolyte to manufacture. Furthermore, 1 GWh capacity of lithium-ion battery requires ~900-950 MT of Electrolyte. Thus, the agreement signed by the Tata Group will increase the need for electrolyte. We believe players like Neogen Chemicals will benefit as the firm has already declared a capex of 10000 MT for Electrolyte and has obtained a licence from the Mitsubhi arm for up to 30000 MT worth of Electrolyte.
Impact: Positive