Exide Energy Solutions, a wholly owned subsidiary of Exide Industries, has signed a lease-cum-sale agreement with Karnataka Industrial Area Development Board (KIADB) to procure an 80-acre land parcel at Hitech Defence and Aerospace Park, Phase-2, Bengaluru.

In a BSE filing, Exide said that the land parcel would be used to set up a state-of-the-art greenfield multi-gigawatt lithium-ion battery cell manufacturing facility to cater to the new-age electric mobility and stationary application businesses in India.

Exide had signed a multi-year technical collaboration agreement with China-based SVOLT Energy Technology (SVOLT). Under the pact, SVOLT will grant Exide an irrevocable right and license to use and commercialize necessary technology and know-how owned by them for lithium-ion cell manufacturing in India while extending the provisions needed to deploy the greenfield manufacturing plant on a turnkey basis.

Earlier this year, the Karnataka State Department of Industries and Commerce said that Exide had sought land for the facility for which the company would invest ₹60 billion (~$789.53 million).

Exide had announced that it would form a special purpose vehicle by way of a wholly-owned subsidiary for routine business operations of the li-ion cell manufacturing facility.

With a focus on expanding capacities to meet the rising demand for battery applications, SVOLT produces and develops lithium-ion batteries and battery systems for electric vehicles (EV) and energy storage. SVOLT’s portfolio includes battery materials, cells, modules, packs, battery management systems, and energy storage products.

According to Wood Mackenzie, a global research and consultancy firm, the cumulative global lithium-ion battery capacity is likely to rise over five-fold to 5,500 GWh between 2021 and 2030, considering the pipeline capacities announced to meet the rising demand for batteries. Chinese manufacturers have announced plans to build more than 3,000 GWh of capacity. The lithium-ion battery market encountered shortages last year due to the growing EV market demand and rising raw material prices.

In November 2020, Exide Industries invested ₹331.7 million (~$4.49 million) in its subsidiary Exide Leclanche Energy Private Limited.