Commercial vehicle manufacturer Ashok Leyland announced it will spend Rs 5,000 crore in the next decade to develop next-generation batteries in automotive and non-automotive applications, such as energy storage systems.
The program will serve not only the company and its subsidiary Switch with its own electric vehicle portfolio but also the non-captive demand within the overall automotive industry and the energy storage industry, which is the flagship of the Hinduja group, according to a statement.
It would involve investments in excess of 5000 crore in the next 7-10 years in this business, it added.
The company reported that it has signed a long-term exclusive contract with CALB Group, which, out of the many battery technology companies in China, is one of the leading.
“Ashok Leyland is deeply committed to shaping the future of sustainable mobility in India in full alignment with the government’s vision. Our strategic partnership with CALB is a significant step towards creating a localized battery supply chain in India to accelerate the adoption of electric vehicles in India and reduce our dependence on fossil fuels,” Ashok Leyland Chairman Dheeraj Hinduja said.
Ashok Leyland MD and CEO Shenu Agarwal said that the new battery business will first target the automotive market and subsequently also non-automotive markets such as energy storage systems.
It will establish a Global Centre of Excellence that will act as a research and development center to promote innovation in battery materials, recycling, battery management systems and new manufacturing processes, he added.
At the BSE, Ashok Leyland stocks were up 0.20 percent at Rs 127.15 each.
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