India's largest battery maker, Exide Industries Ltd, expects to book its first revenue from electric vehicle cell manufacturing in the October to December quarter of the financial year 2027, becoming one of the first homegrown manufacturers to monetise locally made lithium-ion cells through sales to external customers.
Speaking after the company's annual general meeting on Friday, chief executive Avik Roy said Exide will begin supplying LFP (lithium iron phosphate) cells to a three-wheeler customer, with commercialisation of NMC (nickel manganese cobalt) cells for two-wheelers to follow.
The guidance comes barely a month after Tata Agratas said it expects to generate about ₹400 crore in revenue from its cell business through sales to its group company, Jaguar Land Rover, before the end of FY27, although it has not specified the quarter in which sales will begin.
“These are for 2 main applications, there are many pack businesses also, which means the customers want complete battery packs. To some of the OEMs, we are already supplying packs, some big OEMs. But those cells will transition to our local various cells,” Roy explained.
“Some OEMs will only take cells,” he added. Exide has a battery pack plant in Prantij, Gujarat.
Import economics shift
Exide's Roy argues that the reality of imported cells is changing, with the cost advantage of Chinese players diminishing due to multiple factors, ranging from a surge in raw material prices to the removal of export tax rebates.
“It is difficult to comment on what the price difference will be with imports, as things are volatile. But prices of imported cells are going up significantly,” Roy said, adding that the demand surge of EV batteries inside China is crunching supply for external OEMs, which is increasing prices.
An EV uses a battery pack, which consists of a collection of cells. While battery packs have been localised, with companies importing only cells, domestic cell production has not picked up significantly.
Ola Cell, which has commissioned a 6GWh cell plant, is catering only to captive demand from its two-wheeler parent, Ola Electric, helping the company reduce costs.
Several companies have announced EV cell plants, with Amara Raja, Reliance Industries, and JSW Group also expected to join. Cumulative domestic capacity is projected to exceed 100GWh by 2030, according to the companies' projections.
Exide is building a 6GWh plant in Bengaluru in the first phase, with a 6GWh expansion in phase 2, for a total capacity of 12GWh. It had inked a technology partnership agreement with Chinese battery player, Svolt.
According to Roy, the company has started producing samples, which are being sent to customers for product testing before they are purchased through a commercial partnership.
Exide also has a partnership with Hyundai Motors to supply NMC cells for its electric vehicles in the Indian market, although production is expected to accelerate for two- and three-wheeler cells.
Exide has also added that the customers for this cell will include players from the telecom sector and battery energy storage system makers.
Grab Offer Now
