Typically, vehicle makers import battery cells from China or South Korea. Log9 will have an initial capacity to produce 50 MWh of battery, which can power up to 25,000 electric two-wheelers.
Log9 cofounder and managing director Pankaj Sharma told ET that the company has invested about $5 million in the new facility. Log9 would be the first in India to deploy an indigenously made battery in an EV and this is likely to happen in the current quarter, he said.
The company had raised $45 million from Amara Raja Batteries and Petronas Ventures, valuing it at $250 million, as ET reported on January 23. Amara Raja Batteries will have the option of using Log9’s cell technology to manufacture batteries at scale, said Sharma.
Log9 will not be selling battery cells separately but will feed the output into its core battery pack business, Sharma said. This, he said, would improve the company’s margins.
India has been pushing indigenous manufacturing of EV battery cells in an attempt to reduce dependence on China. The government has come up with a Rs 18,000 crore production-linked incentive scheme for local manufacturing of EV batteries and companies like Ola Electric, Reliance Industries and Rajesh Exports have signed agreements to avail of the incentive.
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Sharma had told ET in January that the company was not intending to make use of the incentive scheme for manufacturing cells.Log9 recorded revenue of about Rs 100 crore in fiscal 2023, a fourfold increase from the year before and Sharma said he expects a similar jump in FY24.
Companies buy battery packs from Log9 and install them in their vehicles and Hero Electric as one its clients.
Sharma declined to comment on the clients who will be using the company’s locally made cells.
Founded in 2015 by Akshay Singhal, Kartik Hajela and Sharma, Log9 said it has filed more than 80 patents related to battery technology.
“Our cells are designed from the ground up in India, for India; to suit Indian operating conditions, climate, and customers, and are hence going to play a crucial role in making India self-reliant,” said Singhal, who is also its chief executive.
