Tata Chemicals to enter lithium-ion tech; tie-up with ISRO
India’s Tata Chemicals Limited (TCL), a manufacturer of basic chemistry products (soda ash, sodium bicarbonate) and a leader in India through its consumer and specialty products, has signed a Memorandum of Understanding (MoU) with the Indian Space Research Organisation (ISRO) for transfer of ISRO’s lithium-ion cell technology. The MoU follows Tata’s announcement, early this year in January, to invest in lithium-ion battery manufacturing in Gujarat.
Read: China leads in lithium-ion battery supply; Europe trails behind
The Vikram Sarabhai Space Centre (VSSC), a part of ISRO, has developed technology to produce space grade lithium ion cells of various kinds, to power its rockets and satellites. Under this MoU, ISRO would transfer the technology to Tata Chemicals, so that it may utilise the knowhow for the manufacture of lithium-ion cells in India.
VSSC, ISRO would be providing this technology to TCL on a non-exclusive basis, to manufacture cells of varying capacity, size, energy density and power density – catering to a wide spectrum of power storage requirements.
With a transformation agenda built on innovation and sustainability, this move envisages leveraging advanced technology developed in India for wide commercial use, and is in line with the company’s strategy to grow its speciality business.
ISRO uses Li-ion batteries as power sources for satellites and launch vehicle applications due to their high energy density, reliability and long cycle life. Last year, VSSC of ISRO, which has developed the technology, demonstrated the performance of the cell under various testing conditions and established its cycle life characteristics in accelerated mode. According to ISRO, this technology can also be adapted to cater to the Li-ion cell requirement for other national needs.
The launch of electric vehicles is aimed at achieving sustainable development in India, which in turn is acting as a catalyst for market growth in the country. However, India lacks in manufacturing of li-ion batteries, and largely imports it from other Asian countries including China, Taiwan and South Korea. Hence, lack of indigenous manufacturing units for li-ion batteries is expected to act as a major growth inhibitor in the India market over the next five years, according to a report titled “India Lithium-ion Batteries Market Forecast & Opportunities, 2020”, by Techsciresearch.
In addition, the government has announced tax exemption on electric vehicles powered by Li-ion batteries, which is anticipated to drive the market over the next five years. Owing to their compactness, lightweight and high durability, Li-ion batteries are expected to witness wider adoption in telecom & data communication applications as well as energy storage systems. Major players engaged in developing Li-ion batteries in India include Samsung SDI Company Limited, Sony and Amco.
Meanwhile, to discourage the high import the Indian government has doubled the basic import duty on lithium ion cells to 10% from 2021, while battery packs used in manufacturing electric vehicles will be up 15%, compared to the current 5%.
Hence, the need for India to set up its lithium-ion supply locally.
Over a dozen companies ranging from auto component manufacturers to power and energy solutions providers including Exide, Exicom, Amaron, Greenfuel Energy Solutions, Trontek, Coslight India, Napino Auto & Electronics, Amara Raja Batteries, Trinity Energy Systems, Versatile Auto Components have rolled out their plans to make lithium-ion batteries locally to cash in on the wave for green vehicles in the country.