October 18, 2024: Shares of Indian lead and lithium batteries producer Exide Industries, are up 2% after they announced this week an  Rs1 billion ($12 million) boost in funds to accelerate the construction of its greenfield facility in Bengaluru.

This move positions Exide as a key player in the burgeoning Indian EV market, where the demand for lithium-ion batteries is surging. 

The latest investment in its wholly-owned subsidiary, Exide Energy Solutions (EESL), takes Exide’s total outlay to Rs28.52 billion ($340 million) and marks the second Rs1 billion investment in recent months.

EESL, which was merged in March 2022, reported a turnover of Rs2.39 billion ($28 million) for fiscal 2024, more than doubling its revenue from the previous year’s Rs1.12 billion. ($14 million).

Once completed, the 12GW plant in South India will focus on the manufacturing and sale of lithium-ion battery cells, modules and packs, with an eye on India’s growing EV and stationary energy storage markets.

The first phase of the project, with a capacity of 6GWh, should be operational by the end of the current financial year. EESL has already secured strategic partnerships, including a non-binding memorandum of understanding with Hyundai Motor and Kia Corporation for cooperation in the EV market. This collaboration further strengthens Exide’s position in the industry.

Exide Industries, traditionally dominant in the lead-acid battery market, is shifting its focus to lithium-ion technology as part of its broader energy solutions strategy.

In July, the company reported a standalone profit after tax of Rs280 crore (Rs2.8 billion/$33.5 million) for the first quarter of this fiscal year, a 15.7% increase from Rs242 crore in the same quarter last year, while maintaining a debt-free balance sheet.

Exide’s stock has surged 61% year-to-date and 98% over the past 12 months.