(Bloomberg) -- Omega Seiki Mobility Pvt. will invest 8 billion rupees ($98.1 million) to build two facilities in India to manufacture electric vehicle components such as batteries and power trains.
The New Delhi-based company has tied up with startup iM3NY, which manufactures lithium-ion cells in New York, to produce batteries in the South Asian nation, it said in a statement Sunday. Omega, founded in 2018, has also entered a join venture with Jae Sung Tech Korea to make electric vehicle power trains locally, it said.
The demand for lithium-ion batteries in India will increase from 3 gigawatt-hour currently to 20 gigawatt-hour by 2030, consultancy Arthur D. Little estimates, making it crucial to ramp up local cell manufacturing capacity. India imports 70% of its lithium-ion cell requirement from China and Hong Kong due to lack of local production.
Omega's battery facility in the western state of Maharashtra will have a capacity of 0.5 gigawatt initially and scale up to 2 gigawatt, the company said. Its power train plant in Haryana will produce 10,000 units in 2024 and 100,000 by the fourth year, it said.
Cleaning up transport will help the world's third-biggest emitter of greenhouse gases meet its target of becoming net carbon zero by 2070.
(Adds background. A previous version of this story corrected currency conversion in headline and first paragraph.)
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