Ashok Leyland ties up with China’s CALB: Focus on lithium-Iion pack assembly in India; targets full cell production in five years

Ashok Leyland Ltd, the flagship company of the Hinduja Group, is collaborating with China’s CALB Group Co to develop expertise in lithium-ion technology and gradually manufacture batteries domestically. CALB Grou is China’s third-largest battery maker.The Chennai-based truck and bus manufacturer signed a 20-year agreement with CALB earlier this month. Under the deal, Ashok Leyland will initially import cells from CALB and focus on learning the assembly process to build battery packs, reported Bloomberg.”We are not really an EV player if 70% of the components come from outside,” said Shenu Agarwal, CEO of Ashok Leyland. He added that the company aims to eventually gain the capability to design and produce lithium-ion batteries in India.The company’s strategy is deliberately cautious. “Process is even more important than technology in the beginning,” Agarwal said, noting that even leading Chinese manufacturers face variations in factory efficiency.Initially, CALB will supply cells, while Ashok Leyland focuses on pack assembly, heat management, and integrating software, with the Chinese partner playing a supportive role.

Investment and expansion plans

As part of the collaboration, Ashok Leyland plans to invest over Rs 50 billion ($563 million) over seven to ten years to manufacture next-generation batteries for vehicles and grid-scale storage. The company also intends to establish a domestic R&D hub for battery innovation, packaging, and materials science.India is expected to become the third-largest battery market globally, with demand projected to grow 19 times by 2035, according to BloombergNEF. “Ashok Leyland initially plans to supply battery packs for its own vehicles, but expects to expand to other automakers, including two-wheelers, three-wheelers, and grid storage systems within two to three years.The ultimate goal is to design and manufacture lithium-ion cells in India, a milestone expected to take at least five years. “Batteries are a black box today. No one currently understands batteries in India. This technology needs a lot of patience,” Agarwal said.

The company’s cautious, phased approach contrasts with rivals who rushed into cell manufacturing. Reliance Industries Ltd and JSW Group are also exploring collaborations with Chinese firms for battery technology. The partnership reflects India’s need to leverage Chinese expertise to accelerate green energy goals while building domestic capabilities in critical sectors.



_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}