Chennai: Electric vehicle startup Simple Energy, which is setting up its EV factory at Hosur (Tamil Nadu), will invest $150 million (around Rs 1136.5 crore) on a lithium ion cell manufacturing unit. The company has tied up with US-based battery company C4V for technology and knowhow.
The factory will come up over a 600 acre plot, where the company plans to build a second EV factory as part of its Phase 2 expansion plans. Simple Energy had earlier announced an investment of Rs 2,500 crore on setting up its EV manufacturing plants in Tamil Nadu.
“We are vertically integrating the entire value chain, thus bringing better synergy and higher localization. By partnering with C4V, we will consolidate cell supply, which is a vital component for us and makes us more self reliant and reduce our dependency on imports,” said Shreshth Mishra, co-founder, Simple Energy.
“The move will not only reduce the burden of import duties but also ensure the timely supply of quality batteries in the EV space,” Kuldeep Gupta, VP (strategic partnership) C4V said.
Simple Energy’s flagship product, Simple One, will be produced at Phase I of the company’s manufacturing unit located at Hosur which has an annual production capacity of up to one million units. The factory will be operational in the coming weeks. The company has also commissioned a second plant in Dharmapuri, Tamil Nadu, which will have a capacity of 12.5 million units annually as part of its Phase 2 ramp up.