Moneycontrol
Get App
you are here: HomeNewsBusiness
Last Updated : May 21, 2020 04:00 PM IST | Source: Moneycontrol.com

LG Chem halts lithium-ion battery project in India: Report

Batteries from the project were to be supplied for electric vehicles of Hyundai, M&M, Renault and M&M’s South Korean subsidiary Ssangyong.

Mahindra e2o electric car Representative Image (REUTERS/Shailesh Andrade)
Mahindra e2o electric car Representative Image (REUTERS/Shailesh Andrade)

LG Chem has halted plans for its lithium-ion battery project in India as the auto sector reels under the ongoing coronavirus pandemic.

The company was in talks with Renault, Mahindra & Mahindra and Hyundai for an Indian consortium for the project and regarding equity participation for the same, sources told The Economic Times. LG Chem stated the project was announced in 2018.

Batteries from the project were to be supplied for electric vehicles of Hyundai, M&M, Renault and M&M’s South Korean subsidiary Ssangyong.

Close

Stating that India is still at the “beginning stage of exploring demand of lithium-ion battery for EV”, and LG Chem executive told the publisher there is no “tangible information on the progress of the investment plan.”

Moneycontrol could not independently verify the report.

Mahesh Babu, CEO of Mahindra Electric told the paper that discussions on the project were detailed, but this has now “gone under the carpet”. “We have no idea on when this project will revive,” he said.

Industry experts however also believe that COVID-19 notwithstanding, India needs clearer battery storage policy with better incentives, higher localisation and reduced import tariffs.

Follow our full COVID-19 coverage here

Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.

First Published on May 21, 2020 03:50 pm
Sections
Follow us on