Did you know that according to an economic survey presented by our Finance minister this year, India’s Electric Vehicle (EV) is expected to grow at a CAGR of 49% between 2022 to 2030 and will see 1 crore units ales by 2030? With the rising concerns over pollution and the urgent need for sustainable transportation, the EV revolution is gaining momentum in the country. And at the heart of the revolution lies a critical component: the EV battery. Today, we delve into the fascinating world of EV battery manufacturers in India, where cutting-edge technology meets environmental consciousness.
Are you someone who is ready to switch to an electric vehicle but feels uncertain about the battery technology? Or perhaps you’re an investor looking to capitalize on the burgeoning EV market in India? We understand the doubts and questions that might be swirling in your mind. That’s why we’ve taken up the task of demystifying the EV battery landscape in India. Our aim is to address your pain points, provide you with the necessary information, and empower you to make informed decisions.
In this comprehensive article, we will shed light on various aspects of EV battery manufacturing in India that are crucial for understanding and navigating the industry including the key players in the industry, the ever-evolving environment of EV battery stocks in India, and the impact of battery capacity on your EV’s performance. But that’s just the tip of the iceberg. We also discuss the complexities surrounding EV batteries, such as their weight and the significance of capacity.
So whether you’re an Ev enthusiast, a business professional, or simply curious about the green revolution, this article is for you. I hope by the end of this article you will get a better understanding of key players in the Indian EV battery market.
Now without further ado let’s address the elephant in the room
Top EV battery manufacturers in India
As the wheels of the progress turn, India’s electric vehicle (EV) industry charges forward with remarkable momentum. The key to this transformation lies in lithium-ion batteries. Renowned for their density, longevity, and rapid charging capabilities. Currently, most electric vehicle makers import cells and batteries from China, the world’s top producer of lithium-ion cells.
However, companies are now planning to manufacture lithium-ion batteries within the country as these batteries have become a go-to choice for EV manufacturers worldwide. Here we look into the top 10 EV battery manufacturers in India:
Exide Industries:
- With a legacy spanning more than six decades, Exide Industries has established itself as a trusted name in battery manufacturing. They are primarily engaged in the manufacturing of storage batteries and allied products in India and are a prominent player in all categories such as automotive, industrial, and submarine.
- In 2018, Exide Industries and Leclanche ( a leading global energy storage solution provider based on lithium-ion cell technology), formed a joint venture to build lithium-ion batteries manufacturing facility in Gujarat for the Indian EV market with a primary focus on e-transport and stationary energy storage systems. Their commitment and reliability make them a household name in India.
Amara Raja Batteries:
- They are the second-largest automotive battery manufacturer. In 2019 the company made a technology transfer agreement with Indian Space Research Organisation(ISRO). Recently they have set up India’s maiden technology hub to develop lithium-ion cells, at its Tirupati facility in Andra Pradesh.
- They have one of the biggest distribution networks in India comprising more than 30,000 retailers. By investing in cutting-edge technology and expanding their production capabilities, Amara Raja batteries are driving the transition towards greener transportation.
Tata Power/Tata Chemicals:
- When it comes to the EV market in India, there is no doubt Tata Motors lead the race. Tata Group is building an ecosystem for EVs with their group companies such as Tata Chemicals, Tata Power, and Tata Motors. Tata Power will bring the know-how while Tata Chemicals will provide battery technology.
- Tata Chemicals is one of the ten firms that has signed an MoU with the Indian Space Research Organisation (ISRO) for the transfer of lithium-ion cell manufacturing technology created by the Vikram Sarabhai Space Centre (VSSC). They plan to open a manufacturing facility in Gujarat soon.
- Tata Chemicals had launched a lithium-ion battery recycling initiative, as part of its commitment to sustainability. The company aims to recycle 500 tonnes of LI-ion batteries to recover valuable metals such as lithium, cobalt, nickel, and manganese.
Hero MotoCorp :
- When we say motorbike, every Indian immediately thinks of this name. Formerly known as the renowned Hero Honda, this company is India’s largest two-wheeler manufacturer. They have already made investments in the green technology business through other companies, most notably Ather Energy.
- Athe Energy recently unveiled its new EV manufacturing plant at Hosur, Tamil Nadu. Apart from manufacturing RVs, the plant will also focus on lithium-ion battery manufacturing which is a key area of focus for Ather Energy. That is the only EV OEM in India to make its own battery packs and filed around 13 patents on the design and manufacturing of the batteries.
TDSG(TDS Lithium-ion Battery Gujarat Limited):
- They are the first Lithium-ion Battery manufacturing plant in Gujarat which is being set up jointly between TOSHIBA Corporation, DENSO Corporation, and Suzuki Motor Corporation to manufacture and supply lithium-ion batteries to Maruthi Suzuki and Suzuki Motors Gujarat.
- The lithium-ion battery joint venture has the equity stake split between Sizuki(50 percent), TOSHIBA(40 percent), and Denso(10 percent)
Maruthi Suzuki:
- Maruti’s parent company Suzuki Motors Corporation along with its subsidiary SMG(Suzuki Motor Gujarat Pv Ltd) signed a memorandum of understanding with the Gujarat government to invest around 10,440 crores in the manufacturing of EV and EV batteries in Gujarat.
- Under the MoU, SMG will invest Rs 7300 crore for the construction of a plant for BEV batteries close to the existing plant by 2026.
Exicom Tele-Systems:
- The Gurgaon (Haryana) based company is an emerging player in the Indian EV battery market which operates in the 3 key business areas such as telecom, storage, and green mobility. They provide customized products as per OEM’s requirements for vehicles ranging from 2-wheelers or LEVs to passenger cars to large buses or commercial transport. In 2021 Exicom Tele -system partnered with Omega Seiki Mobility Pvt ltd (OSM)for lithium-ion batteries for its electric cargo vehicles.
- With a strong emphasis on research and development, Exicom Tele systems are poised to make a significant impact in the EV battery space.
Future Hi-tech Batteries:
- Headquartered in Punjab the company aims to provide battery systems and complex energy solutions for numerous applications across solar energy storage, automotive, and many more.
- The battery systems are well equipped and efficient enough to make the way for advanced lithium technology.
Amperex Technology Ltd(ATL)
- Being one of the top Li-ion battery manufacturers in the world, the Hong Kong-based firm is renowned for its highly advanced technology in terms of manufacturing Lithium-ion batteries across the world. In India, the company is operating from the state of Haryana.
- Hyundai, Honda, and Toyota are some of the major companies which are collaboratively working with the ATL
Now that we’ve reviewed the many significant companies in the EV battery industry, there may be some common questions that haven’t been answered. Let’s look into it.
A recent industry analysis predicts that India’s Electric Vehicle (EV) market would increase to $7.09 billion by 2025. As the EV revolution gains traction, one question arises in everyone’s mind: “How can we ride the EV trend?” Well, then why dont you consider investing in companies from the EV sector?
If you believe in the Indian EV industry and seeking an opportunity to ride the wave then the best decision is to invest in shares of those companies that are shaping the future. It can be So here are some of the listed Indian companies from the EV battery space.
EV battery stocks in India( Some of these have already been mentioned in the preceding section.)
Exide Industries:
- The company is catering to top OEMs in the country. From Tata Motors and Maruthi Suzuki in four wheeler segment to Bajaj in the two and three-wheeler segments. Exide enjoys a strong presence across the entire automotive value chain.
- It is a small-cap stock. The stock has a three-year CAGR return of roughly 19.01%. Currently, the company has a RoCE(Return on Capital Employed) of 7.58%
Amara Raja Batteries:
- They are the second-largest producer of automotive batteries in India. It has a widespread network catering to the automotive and industrial segments with its Amaron brand of lead batteries.
- It is small-cap stock. The stock’s three-year CAGR is 21% with a RoCE of 20%.
Tata Chemicals:
- The Tatas dominate the Indian EV business, with companies such as Tata Motors in EV manufacturing, Tata Technologies in EV software, and Tata Chemicals in battery manufacture.
- Through its subsidiary Tata Chemicals Energy Limited, the company focuses on the research, development, and manufacturing of advanced lithium-ion batteries. It is a mid-cap stock with strong backing and a diversified portfolio.
- A mid-cap stock that made a significant stride in the EV battery market. The stock has given a 3 CAGR return of 68% with a current RoCE of 12.3%
Bharat Electronics :
- Even though it primarily engages in the manufacturing of aerospace and defense electronics, recently the company announced its foray into EV battery manufacturing. In October 2022, Bharat Electronics received a letter of intent from the US-based Tritoon Electric Vehicle India to supply Ev batteries. The company will manufacture them at its facility in Pune.
- This deal is expected to boost the company’s earnings. It is a large-cap company. The stock had given a 3-year CAGR return of 73.25%.
Hero Motocorp/Ather Energy:
- Ather Energy is the country’s largest manufacturer of electric two-wheelers, having filed numerous patents for the design and construction of EV batteries (as we detailed in the preceding section). As Ather is now an unlisted company, but Hero owns around 34% of the company, and they have formed a joint venture, you can consider investing in shares of Hero Motocorp to reap the benefits.
- It is a large-cap stock and given a three-year CAGR of 23.13% and a RoCE of 23.6%.
HBL power systems:
- According to reports HBL power systems are the 2nd largest manufacturer of nickel-cadmium batteries in the world and the only company in India to use advanced lithium-ion battery technology.
- It is a small-cap stock. The stock has given a 3-year CAGR return of 122%.
Maruthi Suzuki:
- As previously stated, even though the corporation is not directly involved in EV battery manufacturing, it has invested in battery technology through a Joint Venture (TDGS). Because TDGS is not a publicly traded corporation, you can consider buying the shares of Maruti Suzuki.
- It is a large-cap company. The stock has grown at a CAGR of 30.6% over the last three years.
Remember that the primary purpose of discussing the EV stock is to make you aware of the listed firms, not to provide investment advice. It is usually a good idea to research companies before investing in them.
Apart from what we have covered above, if you are not interested in the stock market but still want to gain from the EV boom in India, you might consider investing in EV charging stations, which can be easily done through the COCO franchisee model by GO EC(a company in the EV charging landscape).
As we gain a better understanding of the various investment possibilities, we may begin to discuss the next item on your mind.
What does EV battery capacity mean?
Lithium-ion battery capacity is the energy contained in an electric vehicle battery pack. Think of it as the fuel tank of an electric vehicle, determining how far it can travel on a single charge. The energy capacity of an EV battery is measured in kWh(Kilowatt hours) which means the ability of the battery to deliver a set power output over a period of time(in hours).
To understand the significance of EV batteries, let’s consider two scenarios:
Scenario 1 : Vehicle A has a battery capacity of 40kWh, while Vehicle B has a battery capacity of 60kWh. Both vehicles have similar energy efficiency ratings.
Here Vehicle B with a larger battery capacity can travel a more extended distance on a single charge compared to Vehicle A. Higher capacity translates into a greater driving range, providing owners with enhanced flexibility and reducing the need for frequent charging.
Scenario 2: Two identical EVs, Vehicle C, and Vehicle D, have the same battery capacity of 50kWh. However, Vehicles C has a higher energy efficiency rating compared to Vehicle D
Even though both have the same battery capacity, the one with higher energy efficiency can travel longer distances with the same about of energy. This shows the significance of not only battery capacity but also the efficiency of the EV battery.
Factors such as speed, outside temperature, and the usage of batteries also heavily influence the rate of battery use.
How heavy is an EV battery?
The weight of an EV battery refers to the mass of the battery pack that powers the electric vehicle. As you may expect, EV batteries tend to the substantially heavier than traditional internal combustion engines due to the materials used and the energy density required to deliver optimal performance.
As there is no single-shot answer to the question, we may say it depends. So let’s have a look at what it is dependent on.
Factors influencing the weight of an Ev battery.
- Battery Chemistry: The type of battery chemistry employed affects the weight of an EV battery. Lithium-ion batteries, commonly used in the modern Vs, offer high energy density and are relatively lightweight compared to other battery chemistries.
- Capacity and Range: As the capacity and driving range of an EV increases, the battery pack’s weight typically follows suit. Larger battery packs with higher energy capacities are required to provide power for extended distances.
- Safety measures: EV batteries incorporate various safety features, such as cooling systems and protective casings, to ensure stable and secure operations. These additional components contribute to the overall weight of the battery pack.
- Battery size and configuration: the physical size and arrangement of the battery cells within the pack influence its weight. Factors like the number of cells, their arrangements, and the inclusion of the structural support systems impact the overall weight distribution.
The weight of a EV battery affects the vehicle’s overall weight and consequently, its performance and efficiency. While a heavier battery pack may contribute to the increased range due to the higher energy capacity, it can also impact the vehicle’s structure and optimize the powertrain and chassis, manufacturers aim to mitigate the impact of the battery weight and deliver a satisfying driving experience.
What is the longest lifespan an EV battery can have?
I believe it’s an interesting subject, and I’m sure many of us want to set the standard. It is, however, dependent on how you treat your vehicle. According to industry estimates, ordinary EV batteries will last 100,000 to 200,000 miles or 15 to 20 years.
The lifespan of an EV battery refers to its ability to retain a significant portion of its original capacity over time. It determines how long an electric vehicle battery can power the vehicle efficiently before needing replacement or major degradation.
Factors influencing Longevity
Temperature management: The operating temperature of an Ev battery greatly impacts its lifespan. Extreme temperatures, both high and low, can accelerate battery degradation. Effective thermal management systems that maintain optimal battery temperature during charging and operation contribute to longer-lasting batteries.
Charging practices: This is something every EV owner must take seriously. Consistent and appropriate charging practices can significantly influence the lifespan of an EV battery. Completely depleting a battery down to its very last electron can damage it or shorten its life. So to prevent that Automakers build in margins to prevent batteries from discharging completely(not below 20%) and from charging right up to 100 percent. Also, consistent usage of fast charging can degrade battery life, so it’s advisable to use slower and controlled charging methods whenever possible.
Battery Management System: Advanced battery management systems integrated into the EVs help monitor and regulate the battery’s operating conditions. These systems optimize charging and discharging processes, prevent overcharging or over-discharging, and contribute to prolonging the lifespan of the EV battery.
The quest for the longest Lifespan EV battery continues to drive innovation in the electric vehicle Industry. With the advancement in battery chemistry, temperature management, charging practices, and battery management systems, EV batteries are becoming more durable and capable of enduring the demands of daily driving.
Let’s take a look at the next item in the cart.
What is the cost of replacing an EV battery?
To begin calculating the cost of battery replacement, consider the cost of a Lithium-ion battery pack per kWh. When we look at the past trend, the li-ion battery pricing in 2010 was $1200/kWh, and in 2018 it is $200/kWh, and if the trend continues, the battery pack might cost less than $100/kWh by 2030.
So, using the Tata Nexon EV as an example, let’s dig a little further.
So, in India, the price of a 1kWh battery pack is between Rs 18,000 and Rs 22,000, while Tata Nexon has a 31kWh EV battery pack. The Nexon EV battery pack will cost between 5.50 and 6.20 lakh to replace.
You don’t have to be anxious because most EV manufacturers now offer warranties of up to 8 years or 160,000 kilometers.
However, keep in mind that there are numerous factors that influence EV battery Replacement costs, such as battery capacity, market competition, battery chemistry, manufacturer-specific pricing (such as warranty coverage, service contracts, and brand-specific policies that impact the cost), and many others.
Are EV batteries repairable?
It’s hard to give a straightforward answer to this question. You see, when it comes to many electric vehicles, repairing a slightly damaged battery pack can be a real challenge. Take the Tesla model, for example. Experts have dubbed them as having “zero repairability” when it comes to their battery packs. So, what does that mean to you? Well, unfortunately, it leads to higher insurance premiums.
But in some cases, the slightly damaged battery pack can be repaired in the EV battery repair centers. They offer services like battery checks, cell replacements, full battery replacements, and Cooling system maintenance.
So keep in mind that even if minor damage may be fixed, there exist many challenges, which include:
- Battery complexity: Ev batteries are complex systems of numerous interconnected cells, control systems, and sophisticated management systems. Diagnosing and repairing specific cells or component-level issues can be challenging and requires specialized knowledge.
- Safety considerations: EV batteries contain high voltage systems, and ensuring safety during repairs is most important. Proper training, precautions, and adherence to safety protocols are crucial to mitigate risks associated with handling high-voltage components.
- Manufacture restrictions: Some automakers impose restrictions on third part repair services, preferring authorized repair networks to maintain quality control and warranty compliance. This can limit the availability of repair options outside of the manufacturer’s network.
Having said that let’s look at a frequently asked question.
Who is Tata’s EV battery supplier? /Which company’s battery is used in the Tata Nexon EV?
It is a typical question that many of us have, and the funny thing is that even most Tata Ev owners may not know the answer.
So let’s look at who the supplier is. The battery is sourced from Tata AutoComp Systems Limited, which has a joint venture with China’s Guoxaun HI-Tech to produce them locally.
Conclusion
So, there you have it, It was a deep dive, isn’t it? We explored the fascinating world of EV battery technology in India! Throughout the article, we’ve explored the top EV battery manufacturers, the battery stocks, the capacity, the weight, and even the possibilities of repair. It’s truly remarkable how these advancements are shaping the future of transportation and paving the way for a greener and more sustainable world.
As the demand for electric vehicles continues to surge, it’s essential to understand the key players in the EV battery market. Companies like Tata, Exide, Amara Raja, and others are leading the charge in the manufacturing high quality and reliable EV batteries. Their commitment to innovation and sustainability is propelling India’s transition towards a cleaner and more energy-efficient transportation sector.
The world of EV batteries in India is in a dynamic and ever-evolving landscape. From the top manufacturers to the ev stocks, capacity, weight, and repair options, there is much to explore and celebrate. As consumers, investors, and advocates of sustainability, let’s embrace the electrifying journey ahead, knowing that with each EV battery powering our vehicles, we are contributing to a cleaner and brighter future for generations to come.