Automotive Electronics Power Private Ltd. (AEPPL) — jointly owned by Suzuki Motor, Toshiba and Denso — has signed a memorandum of understanding with the state government of Gujarat to invest INR 49.3 billion ($689.7 million) in a lithium-ion battery production facility in Hansalpur, in the state’s Ahmedabad district.
AEPPL will invest in two phases, with an initial focus on setting up production lines for battery packs and modules by the end of 2020. It aims to expand output to 30 million cells per year by 2025.
The plant will supply lithium-ion batteries to Maruti Suzuki and Suzuki Motor Gujarat. Suzuki Motor holds a 50% stake in the venture, while Toshiba has 40%, with Denso holding the remaining 10%.
Earlier this year, Tata Chemicals agreed to invest in a 10 GW lithium-ion battery plant in the state of Gujarat.