Exide Announces Entry into Lithium-Ion Batteries Industry

Exide Industries Ltd., India’s largest manufacturer of lead acid storage batteries and power storage solutions provider, and Leclanché SA, one of the world’s leading energy storage solution companies, headquartered in Switzerland, have announced a joint venture (JV) to build lithium-ion batteries (LIBs) and provide energy storage systems for India’s electric vehicle market and grid-based applications.

The exclusive JV agreement was signed on June 27, 2018, and aims to aid India’s transition to green energy and clean transportation. The JV’s production plant will be based in Gujarat.

Knowhow from Leclanché

As part of the JV, Leclanché will provide access to its knowhow and intellectual property for lithium-ion cells, modules and battery management systems and Exide will leverage its extensive sales network and brand. “As a result of this unique combination, the JV is ideally positioned to be a leading provider of storage solutions for electric vehicles and energy storage applications in India and will also contribute to developing solutions to increase the amount of renewable energy that is used and reduce India’s dependence on fossil fuels,” a press release issued by Exide said.

Exide Industries, who are committed to setting up large-scale manufacturing of LIBs, will be the majority shareholder and Leclanché will be the strategic minority shareholder of the JV. A module and battery pack assembly line is expected to be operational by Q2 2019 and a lithium-ion cell production plant is expected to be in operation by mid-2020. In the intervening period, cells will be sourced from Leclanché’s plant in Willstätt, Germany.

The JV will focus on e-transport, stationary energy storage systems and speciality storage markets. In e-transport, the target segment is fleet vehicles including e-buses, e-wheelers and e-rickshaws.

According to Mr. Gautam Chatterjee, CEO of Exide Industries, “Leclanché brings superior technology, modules and battery anagement systems, as well as immediate access to engineering resources to build market-ready products.

This ideally compliments our leading position in the lead acid storage battery market in India and will allow us to take the lead in the lithium-ion battery industry, which is expected to grow significantly in the next few years.”

“In a region that is expected to be one of the world’s largest and fastest growing markets for electric vehicles, the JV shall provide Leclanché with giga-scale procurement volumes, which will help reduce costs, and increase recurring annuity revenues, generating recurring stable revenue growth for the company,” Mr. Anil Srivastava, CEO of Leclanché, said.