The $200 million. That's how much plug-in two-wheeler maker Ola Electric said it has raised in its latest funding round. And that's also the amount Switch Mobility, the electric vehicle (EV) arm of truck manufacturer Ashok Leyland, has said it is close to mopping up from investors.
Both these developments happened this week. From scooters to cars to commercial vehicles, India’s EV industry is in the news almost every day. They are a key reason why India estimates it will need 60 gigawatt-hours of Lithium-ion (LI-ion) cells, which make up the most popular kind of batteries today, by 2025.
How much of that is made in India? Well... zilch. One would think this is the perfect scenario for the two family-owned companies synonymous with batteries in India—Exide Industries and Amara Raja. Except, they make lead-acid batteries—its Li-ion counterparts are a whole other deal.
The arch-rivals are doing everything from joining hands with global companies to investing in promising Indian startups.
But they are just two among ten entities that have queued up for incentives under a $2.4 billion government scheme for cell manufacturing. What's worse for Exide and Amara Raja is that some of the names they may want to supply are fellow applicants themselves - including Ola and carmaker Hyundai.
And Exide (market cap: $2 billion) and Amara Raja ($1.4 billion) are throwing in their lot with a technology that already has promising challengers. Sodium-ion batteries are one, and Reliance Industries, India's most valuable company, is buying Faradion - a British startup in the space - for $130 million.
We @ Mumbai Multimedia Studio points out in timely story today, Exide and Amara Raja are paying the price for not getting their act together. And their woes also speak to the gaping holes in India's grand battery manufacturing plans