Mahanagar Gas taps two-wheeler OEMs for supply of EV batteries

According to reports, India's electric two-wheeler market has seen a 24 percent surge in sales after the Budget, which was presented on February 1, fuelled by increasing fleet demand and growing consumer interest.

"Currently, we are primarily targeting the two-wheeler segment. These are NMC cells — Nickel Manganese Cobalt (NMC )— a specific type of lithium-ion battery with a distinct chemistry that is mainly used for two-wheelers," Shinghal said.

Energy companies are increasingly looking to diversify into the clean energy business.

Earlier this year, MGL announced a partnership with US-based International Battery Company to set up a cell manufacturing facility in Karnataka.

The joint venture, in which MGL holds a 40 percent stake, will develop two plants with a combined capacity of 500 megawatts, ultimately scaling up to a 1-gigawatt factory.

"The land is already allocated, and civil works have begun. We expect to commission this plant within 15 months. We find it economical to manufacture cells here but the main challenge lies in designing the factory. This is where IBC  has succeeded — they have set up a pilot plant in Korea and developed a strong product. With a proven design, we are more confident in scaling up manufacturing. We will replicate the same model at full scale in Bangalore," Shinghal  said.

The total capex for the first phase is around Rs 870 crore, with returns of the project expected between 16 and 18 percent, Shinghal added.