VSL PowerHive, the battery energy storage arm of Vikram Solar, is preparing to establish a 7.5 GWh battery energy storage system (BESS) assembly plant in Chennai, Tamil Nadu, with commercial operations targeted for March 2027. The project marks a key step in the company’s expansion into energy storage manufacturing as India’s demand for grid-scale storage and renewable energy integration grows.
Equipment Delivery Expected in November 2026
During Vikram Solar’s Q1 FY27 earnings call, Arun Mittal, CEO of VSL PowerHive, said equipment for the proposed assembly facility had been ordered around three months earlier, with deliveries expected in November 2026. Utility infrastructure was under installation, and the plant was expected to be installed by January 2027, ahead of the planned start of commercial operations in March 2027.
The facility is part of PowerHive’s broader plan to develop integrated battery cell manufacturing and BESS assembly capacity in phases. According to the company’s management, the first phase includes a 7.5 GWh BESS assembly plant and a separate 7.5 GWh lithium iron phosphate (LFP) cell manufacturing facility.
Separate LFP Cell Manufacturing Plan
PowerHive is also progressing with plans for its 7.5 GWh LFP cell manufacturing facility. The company said it had shortlisted land options in two states and was in discussions with both state governments regarding incentives. It has also selected a technology and manufacturing partner for the proposed cell plant.
The facility is expected to use next-generation, large-format LFP cells, with commercial operations tentatively targeted for the fourth quarter of FY2029. The cell manufacturing project is separate from the Chennai BESS assembly plant and would support the company’s longer-term move towards greater integration across the battery supply chain.
Roadmap to 30 GWh Manufacturing Capacity
VSL PowerHive’s expansion strategy aims to build up to 30 GWh of battery manufacturing capacity over the long term, spanning battery cells, modules and packs, and BESS. Its website outlines a phased approach, beginning with BESS assembly before progressing towards integrated cell and storage-system manufacturing.
The company is positioning its storage business to serve commercial and industrial (C&I) customers as well as utility-scale applications. These systems can support renewable energy integration, grid flexibility, peak-load management and power reliability.
During the earnings call, VSL PowerHive also confirmed that it had executed its first order for a 20 MWh utility-scale storage solution. This provides an early indication of its activity in the stationary storage market as it develops its manufacturing capacity.
The proposed assembly plant and cell manufacturing facility form part of Vikram Solar’s wider move beyond solar modules into battery storage and integrated clean-energy solutions. Their progress will be important to watch as the company works towards its planned manufacturing milestones over the coming years.
Electrify your feed! Click here to join our Whatsapp group and to get the latest updates, expert insights, and innovations driving India’s energy storage revolution.
