Automotive Electronics Power Private Limited (AEPPL), a joint venture between Japanese companies Toshiba, Suzuki and DENSO, is planning to invest INR37.15 billion ($520.1 million) to start building the second phase of its battery manufacturing plant in Hansalpur, Gujarat.
The first phase of the plant is being constructed by the joint venture at an investment of INR12.14 billion ($170 million). It manufacture and supply Lithium-ion battery to Maruti Suzuki and Suzuki Motor Gujarat. The manufacturing operation will be derived by Suzuki’s expertise with contribution of Toshiba’s cell technology and Denso’s module technology. The production is expected to begin by the end of 2020.
The Lithium-ion battery joint venture sees the equity stake split between Suzuki (50%), TOSHIBA (40%) and Denso (10%). The investment used in the second phase is a part of a the INR50 billion ($700 million) that Suzuki had earmarked to build its lithium-ion battery manufacturing plant. This investment will spread over a period between 2021-25.
While the first phase of the joint venture will feature only a single assembly line, the second phase is expected to further add four more battery assembly lines. AEPPL aims to manufacture 30 million lithium ion cells annually by 2025, which translates to a capacity of over 1GWh. The company is also expected to add nearly 1,000 jobs by the same time.
Maruti Suzuki India Ltd., Suzuki’s Indian subsidiary, is the largest car-maker in the country. The company is gearing up to launch its first EV in India by the end of this year.