Ashok Leyland Ties Up With CALB to Boost Battery Manufacturing

Ashok Leyland, which is the second-largest manufacturer of trucks and buses in India, has established a long-term collaboration with China's CALB Group, which is the third-largest battery manufacturer in the world.

This partnership is designed to bolster Ashok Leyland's position in the rapid growth area of electric vehicles and energy storage. Under the 20-year agreement, Ashok Leyland plans on initially importing lithium-ion cells from CALB as the company begins to develop skills to assemble the cells into battery packs.

CEO Shenu Agarwal commented that the company's intention is to gradually develop capabilities to design and manufacture advanced batteries in India. In connection with the partnership, Ashok Leyland plans to invest more than ₹50 billion ($563 million) within the next seven to ten years in advanced battery technology that spans electric vehicles to grid-scale storage.

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The partnership illustrates how Indian conglomerates are relying on Chinese know-how to accelerate clean energy uptake, even though the Indian government is pressing for greater self-reliance. Reliance Industries, JSW Group, and Adani have also been exploring partnerships with Chinese companies to tap into China's global leadership in battery technology.

Ashok Leyland will first focus on supplying packs for its own vehicles before expanding to two-wheelers, three-wheelers, and large-scale storage systems. The company also plans to set up a domestic R&D hub for battery innovation, packaging, and materials science.

Agarwal emphasized that building battery technology demands patience and process discipline. “Batteries are a black box today. No one currently understands batteries in India,” he said.