Picture used for representational purpose only

GANDHINAGAR: Japanese majors Suzuki Motors, Toshiba and Denso have formed a consortium to set up a plant for manufacturing lithium-ion batteries and electrodes in Gujarat . The plant will come up near Hansalpur in Gujarat. The proposed lithium-ion battery plant will be the biggest in the world, claimed sources in the know.

Although the investment figures have not been disclosed yet, it has been learnt that the consortia is likely to invest Rs 30,000 crore to Rs 50,000 crore in a phased manner over eight years. The investment will depend on growing worldwide demand for electric vehicles, sources said.

The decision of the three Japanese companies to set up their lithium-ion battery and electrode manufacturing facility appears to be a move to tap the huge potential market in India. The Indian government has announced its intent to shift to 100 % electric cars by 2030.

While Suzuki is an automobile major, Toshiba is a conglomerate that provides diverse services in information technology, communications equipment and systems, electronic components and the like. Denso is a leading supplier of advanced automotive technology, systems and components for major automakers.

A state government official confirmed that Suzuki Motors, Toshiba and Denso have jointly proposed setting up of the plant to cater to the needs of electric cars worldwide. “Suzuki Motors will be the lead partner in the joint venture. Investment by the three companies will be in proportion of 50:40:10 between Suzuki, Toshiba and Denso,” the official added.

The Suzuki Motors-led consortium intends to purchase land close to Suzuki’s Hansalpur plant. However, the proposed land falls partly in Ahmedabad and Mehsana districts. “The state government has cleared this revenue matter and has offered the consortium attractive incentives,” a top official said.

Modalities of a detailed memorandum of understanding(MoU) are being worked out and is expected to be signed shortly. The Prime Minister’s office (PMO) is also closely monitoring progress in the matter, sources said.

This proposed investment by the Suzuki–led consortium is in addition to Suzuki's current and proposed investment in its hybrid car plants. Suzuki Motors has invested more than Rs 8,000 crore in its Gujarat plant so far.

Tata group buys land in Dholera for battery plant

Tata group has become the first company to buy land in the Dholera special investment region (SIR). Sources in the state government said the company has paid the first instalment of Rs 40 crore to buy land for its proposed lithium-ion battery plant.

