Tata Chemicals will aid in a number of ways including the evaluation of the establishment of Li-ion cell manufacturing plant, battery cell development and production
Tata Chemicals will play a significant role in Tata Motors’ extensive plans for the electric future as it is the technical partner for evaluating the establishment of Lithium-ion cell manufacturing plant while aiding in cell development and local production. It will also help in the operation of a pilot plant for Li-ion battery recycling.
Tata Motors and TPG Rise Climate have announced a new EV company with the latter and its co-investor ADQ pumping in Rs. 7,500 crore in compulsory convertible instruments to secure between 11 per cent and 15 per cent stake in this firm and it translates to an equity valuation of up to USD 9.1 billion as the existing capacities of Tata’s PV business will be utilised.
The new EV establishment will develop an India-specific product portfolio of 10 electric vehicles with different body types and range capabilities catering to different segments by FY2026. Tata Motors currently leads the way in the passenger EV space with more than 71 per cent market share courtesy of the good reception for the Nexon EV.
The Mumbai-based manufacturer recently introduced the Tigor EV based on the Ziptron technology and it averages more than 1,000 unit sales to be the most sold EV maker in India. Tata Motors will leverage the Tata Group companies such as Tata Power, Tata Chemicals, Tata Motorsfinance, Tata Autocomp, Tata Digital and Tata Consultancy Services for its EV business.
For instance, Tata Autocomp will help in the operation of the battery assembly plant for Nexon and Tigor alongside being the main partner for production ramp-up and localisation implementation while Tata Power’s expertise in charging infrastructure will be taken advantage of as it will aid in home charging installation support across cities for the convenience of the consumers.
Tata’s Motorsfinance will offer structured solutions for fleet buyers and support in designing financial solutions. Tata Consultancy Services and ELXSI will speed up research, production design, ADAS systems, connected car technologies, etc. The first round of capital infusion will be completed by March 2022 and the entire funds will be infused by end of next year in the new EV vertical.