Salt-to-software conglomerate Tata Group signed an agreement with the Gujarat government to set up a giga-factory for manufacturing lithium-ion cells, with an estimated initial investment of around ₹ 13,000 crore.
Tata Agaratas Energy Storage Solutions Pvt., a subsidiary of Tata Group, signed a memorandum of understanding to establish an electric-vehicle battery plant that will have a production capacity of 20 gigawatt hours, generating direct and indirect employment for more than 13,000 people, according to a state government document posted on its website.
By setting up this manufacturing facility, Tata Group aims to support the country's transition towards electric mobility and renewable energy.
The plant will contribute significantly to the development of the EV industry and create direct and indirect employment opportunities for over 13,000 individuals.
Morgan Stanley said it has maintained its 'overweight' rating on Tata Motors with a target of Rs 617 per share. The brokerage firm said Tata Group's foray into battery cells will help Tata Motors.
It said this plant will provide a stable, secure and cost-effective supply chain, and all of this is critical to maintaining the lead in the Indian EV space.
At present, Tata Motors has the highest market share in the EV passenger car market. It leads in the EV space with 86 percent market share from just two models — Nexon EV and Tigor EV.
