Tata Group's AHMEDABAD, India's capital, signed an outline deal on Friday to build a lithium-ion cell factory, based on investments of about 130 billion rupees $1.58 billion.
India's car industry is tiny compared to the size of its population. Tata Motors dominates the sales of its electric vehicles EV, which made up just 1 per cent of India's total car sales of about 3.8 million last year.
Tata said the plant, which will be located in Sanand, northern Gujarat, will be completed in less than three years.
It would have a production capacity of 20 Gigawatt hours GWh, which could be doubled in a second phase of expansion.
The project will go a long way in contributing to the development of the EV ecosystem in Gujarat and India, said Vijay Nehra, an official in the Gujarat state government.