Automotive Electronics Power Private Ltd (AEPPL) on Monday signed an MoU with Gujarat government to invest Rs 4,930 crore in two phases to set up a lithium-ion battery plant at Hansalpur in Ahmedabad district.
As per the MoU, AEPPL, a joint venture between Japanese Toshiba Corporation, Denso Corporation and Suzuki Motor Corporation, will make investments in two phases at Hansalpur.
In the first phase, facilities to construct lithium battery packs and module manufacturing will be built by the company at a cost of Rs 1,250 crore by the end of 2020, the government said in a press statement.
In the second phase, the AEPPL will invest Rs 3,715 crore, it said.
By 2025, the company plans to produce 30 million cells per year in its plant in Gujarat.
The foundation stone for the plant was laid in September 14, 2017, jointly by Prime Minister Narendra Modi and Japanese Prime Minister Shinzo Abe, during the latters visit to Gujarat.
AEPPL managing director Ichizo Aoyama and principal secretary of industries department M K Das signed the MoU.
The MoU will facilitate the employment of around 1,000 local people, the official said.
Gujarat chief minister Rupani said that such industries have come in large numbers as a result of various facilitation of the Ease of Doing business in Gujarat as well as facilities for the export of products and business-friendly policies of the state government.