Exide Sparks a ₹1,000-Crore Charge into Lithium and Lead Power Play

Unknown Apr 02, 2026 950 Views

Key Highlights Exide Industries plans to invest more than Rs 1000 crore in the current fiscal year (FY26) across its lithium-ion and lead acid battery businesses, underpinning a strategic push into next-generation energy storage and sustainable mobility solutions &nb...

Key Highlights

Exide Industries plans to invest more than Rs 1000 crore in the current fiscal year (FY26) across its lithium-ion and lead acid battery businesses, underpinning a strategic push into next-generation energy storage and sustainable mobility solutions

The company’s wholly-owned subsidiary, Exide Energy Solutions Limited (EESL), is spearheading the lithium-ion cell manufacturing project with a giga-factory based in Bengaluru, targeting a 12 GWh production capacity in two phases; the first 6 GWh phase is expected to commence commercial production by end of FY26

To date, Exide has already invested approximately Rs 3700 crore in EESL and lithium-ion technologies, with an additional Rs 600-700 crore planned for FY26 to complete the first phase’s capacity

Alongside lithium-ion, Exide is reinforcing its traditional lead acid battery and recycling businesses with a dedicated investment of around Rs 500 crore in FY26, affirming its dual focus on conventional and advanced battery technologies

The company’s lithium-ion offerings include lithium iron phosphate (LFP) and nickel manganese cobalt (NMC) chemistries, catering especially to the expanding electric vehicle (EV) market and energy storage sectors in India

Exide’s investments are funded through a combination of internal accruals and loan financing, supported by government incentives like the Production Linked Incentive (PLI) scheme and regulatory reforms promoting EV adoption

Building India’s Large-Scale Lithium-Ion Ecosystem: The Bengaluru Giga Factory

Exide Energy Solutions Limited was established in 2022 as the principal vehicle to propel Exide into the lithium-ion battery market. The Bengaluru giga-factory under development is envisioned as a state-of-the-art facility with an eventual 12 GWh output capacity, reflecting India’s push for localising battery production to reduce import dependence.

Phase one targets 6 GWh capacity, split evenly between LFP and NMC battery cells

Advanced infrastructure, pilot manufacturing, R&D labs, and testing facilities are nearing completion, with commercial production slated for FY25-26

The factory employs over 300 battery experts across functions including manufacturing, procurement, R&D, quality assurance, and supply chain management

Exide’s vision encompasses the full battery value chain from cell manufacturing to finished battery packs, modules, and integration

Dual Strategy: Cementing Lead Acid Battery Leadership While Growing Lithium-Ion

Exide continues to fortify its legacy lead acid battery business—a segment vital for automotive, industrial, and telecom sectors. The company is investing approximately Rs 500 crore in FY26 to expand capacity, improve recycling efficiency, and upgrade manufacturing technologies such as punched grid and CONCAST methods to enhance battery life and performance.

Recycling remains a core sustainability pillar, with over 75% of lead sourced from recycled inputs and growing green logistics initiatives

Lead acid batteries complement EV applications and traditional markets, underscoring Exide’s holistic approach to energy storage solutions

Financial and Operational Highlights

Total equity investment in EESL stands at approximately Rs 3700 crore as of mid-2025, with Rs 1000 crore injected in FY25 and a planned Rs 400 crore equity infusion early in FY26

Capital expenditure of close to Rs 1000 crore was made in FY25, with incremental investment expected to bring total phase 1 capex to around Rs 5000 crore eventually

The company has transitioned to a unified “One-Exide” operating model, delivering strong double-digit growth across 70% of business segments, including four-wheeler aftermarket and two-wheeler batteries

Exide is investing in cutting-edge Industry 4.0 technologies and AI-driven systems to optimize factory efficiency, quality control, and demand forecasting

Market Outlook and Strategic Positioning

India’s accelerating EV adoption, supportive government policies, including the PLI scheme, and growing renewables integration position Exide to benefit substantially from its investments. Lower import duties and domestic manufacturing incentives further enhance competitiveness.

Exide’s balanced portfolio—marrying established lead acid technology with emerging lithium-ion innovations—ensures resilience and diversification in a rapidly evolving energy storage landscape.

Conclusion

Exide Industries’ Rs 1000 crore-plus investment in FY26 underscores a significant strategic commitment to cement its leadership in India’s battery ecosystem, encompassing both lithium-ion and lead acid technologies. With the Bengaluru giga-factory approaching commercial launch and parallel reinforcements in lead acid capacity and recycling, Exide is poised to be a key driver in India’s sustainable mobility and energy storage future.

Sources: The Telegraph India

Stay Ahead – Explore Now! Angel One Settles Regulatory Case with SEBI for 42.8 Million Rupees