Commercial vehicle maker Ashok Leyland on Monday said it will invest Rs 5,000 crore over the next ten years in the development of next-generation batteries for both automotive and non-automotive applications, including energy storage systems.
The initiative will not only provide for the company's and its subsidiary Switch’s own electric vehicle portfolio but will also cater to non-captive demand in the entire automotive sector, as well as in the energy storage sector, the Hinduja group flagship said in a statement.
This business would entail investments of more than Rs 5,000 crore over the next 7-10 years, it added.
The company said it has entered into a long-term exclusive partnership with CALB Group, one of the foremost battery technology companies in China.
"Ashok Leyland is deeply committed to shaping the future of sustainable mobility in India in full alignment with the government’s vision. Our strategic partnership with CALB is a significant step towards creating a localised battery supply chain in India to accelerate the adoption of electric vehicles in India and reduce our dependence on fossil fuels," Ashok Leyland Chairman Dheeraj Hinduja said.
Ashok Leyland MD and CEO Shenu Agarwal said that in the initial phase, the new battery business shall focus on the automotive sector, and then move to non-automotive areas as well, including energy storage systems.
A Global Centre of Excellence will be created to serve as a hub for research and development, fostering innovation in battery materials, recycling, battery management systems, and advanced manufacturing processes, he added.
Shares of Ashok Leyland were trading 0.20 per cent up at Rs 127.15 apiece on the BSE
