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Suzuki, Toshiba, Denso to make lithium-ion cells in India

S Ronendra Singh New Delhi | Updated on January 15, 2018

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Pledges initial investment of ₹1,200 crore in a JV that will manufacture the batteries



Suzuki Motor Corporation, Toshiba Corporation and Denso Corporationhave agreed to manufacture lithium-ion battery packs in India.

The three Japanese majors have reached a basic agreement for establishing a joint venture company for the production of automotive lithium-ion battery packs in India, Suzuki said in a statement on Friday.

The initial capital expenditure will be 20 billion Japanese yen (around ₹1,200 crore). The joint venture company will be capitalised at 2 billion Japanese yen, with the planned participation ratio of Suzuki 50 per cent, Toshiba 40 per cent and Denso 10 per cent, it said.

“The battery pack manufacturing joint venture by the three companies will realise stable supply of lithium-ion battery packs in India in the course of promoting sustainable cars in the country and will contribute to ‘Make in India’ initiative by the Indian Government,” the company said.

“In the Indian automotive market where compact cars are the mainstream models, introduction of sustainable technology suitable for such affordable cars is required,” the parent company of Maruti Suzuki India said.

The joint venture company will be established in 2017 and shall move to the manufacturing phase as early as possible, it said.

According to industry veterans, such a tie-up would be a big boost to the Indian automotive infrastructure when a lot of companies are considering manufacturing electric vehicles.

Companies like Mahindra & Mahindra, which makes electric vehicles, is now working on its existing vehicles and the government is also promoting the faster adoption and manufacturing of electric vehicles in India (FAME scheme) which has four focus areas including technology development, demand creation, pilot projects and charging infrastructure.

Interestingly, the government has also recently asked the Indian Space Research Organisation (ISRO) to allow private manufacturers who are interested in manufacturing lithium-ion batteries to obtain technology from it. ISRO is expected to come out with a framework on that shortly.

Published on April 14, 2017

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