Reliance, Ola Electric win incentives in India's $2.4 bln battery scheme, sources say (updated)

Rajesh Exports

17/03/2022 08:52

(Adds detail, context)
    By Aditi Shah
    NEW DELHI, March 17 (Reuters) - Reliance Industries
 RELI.NS  and Softbank Group-backed  9984.T  Ola Electric will
receive incentives under India's $2.4 billion programme to boost
local battery cell production after winning a tender, four
sources told Reuters.
    The winning bidders also include Hyundai Global Motors
Company and Indian jewellery maker Rajesh Exports  REXP.NS , the
sources said on condition of anonymity. 
    The Indian government last year finalised a programme to
encourage companies to make battery cells locally as it seeks to
establish a domestic supply chain for clean transport and
renewable energy storage to meet its decarbonisation goals. 
    Ola Electric and Hyundai will get incentives for 20 gigawatt
hours (Gwh) capacity while Reliance and Rajesh Exports have won
incentives for 5 Gwh, the sources said. They did not give a
financial value.
    Reliance and Rajesh Exports did not immediately respond to
requests for comment. Hyundai Global could not immediately be
reached for comment.
    An Ola spokesperson did not comment on whether it has won
the bid but referred Reuters to an announcement made on
Wednesday on its local battery manufacturing plans. Ola Electric
said yesterday it has appointed Prabhakar Patil, the former
chief of LG Chem Power, to its board, and has plans to set up 50
Gwh of storage capacity.
    Battery cell manufacturing is dominated by a handful of
Asian companies, including CATL  300750.SZ , LG Energy Solutions
and Panasonic  6752.T , which also export to Indian companies.
The government wants domestic production and plans to establish
a total of 50 Gwh of battery storage capacity over five years.
    Ten companies submitted bids to manufacture a total of about
130 Gwh of storage capacity. These include automaker Mahindra &
Mahindra  MAHM.NS , battery makers Amara Raja  AMAR.NS  and
Exide Industries  EXID.NS , and engineering conglomerate Larsen
& Toubro  LART.NS .  urn:newsml:reuters.com:*:nL1N2TV0DC
    Some of the companies are already ramping up their plans.
    Refining giant Reliance has acquired two battery companies
for about $200 million - UK-based Faradion, which makes
sodium-ion batteries, and Lithium Werks, which manufactures
lithium iron phosphate batteries.  urn:newsml:reuters.com:*:nL3N2VH3DF
    Exide has entered into a long-term technical collaboration
with China's SVOLT Energy to set up a plant to manufacture
lithium-ion battery cells.  urn:newsml:reuters.com:*:nFWN2VC19M

 (Reporting by Aditi Shah. Editing by Gerry Doyle and Barbara
Lewis)
 ((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023;
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