Lithium-ion battery pack maker Cygni Energy Private Limited is looking to invest about $40 million (over Rs 300 crore) to set up a greenfield manufacturing plant near Hyderabad with the capacity to put together around 40,000 batteries a year, its chief executive said.
The new 1 gigawatt-hour annual capacity plant will quadruple the battery pack makers’ manufacturing capacity. The batteries are used for electric vehicles (EVs) and stationary applications like telecom towers.
The Hyderabad-based company is looking to raise
funds through a mix of debt and equity, with about $7-10 million coming from equity and the rest as debt said chief executive officer Venkat Rajaraman.
Cygni has an existing annual capacity of 250 megawatt-hour, which is currently not being utilised fully. The company has so far sold about 125 megawatt-hour of batteries since 2017, which is equivalent to about 60,000 EV batteries.
“India’s energy storage revolution is happening,” Rajaraman, who is also Cygni’s founder, told ET. “The prediction is that we are going to need upwards of 50 gigawatt-hour of storage requirement in the next 5-7 years. So clearly what Cygni and others are setting up, it looks like we would still fall short of that.”
Manufacturers of battery packs put together smaller cells into a battery and develop the battery management system required for it. Lithium-ion cells are not manufactured in India and are imported into the country, mostly from China.
Cygni has about 16 different battery packs for electric two- and three-wheelers, of which eight have already been approved by local testing agencies. The company works with some of the leading EV manufacturers.
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