Market Updates

Mahindra ties with LG Chem

November, 2018

Mahindra ties with South Korean LG Chem for lithium-ion battery cells. LG Chem is considered to be a leader in electric car battery. Mahindra is expanding its business in India and LG Chem will be supplying the lithium-ion battery cells created by various elements such as, manganese, nickel, cobalt. These battery cells will be utilized by Mahindra for its Indian business and in its South Korean division SsangYong motor.

Along with the battery cells, LG Chem will also design battery modules for Mahindra electric mobility. The parent firm of Mahindra electric mobility holds around 99% stake of the firm. Mahindra will manufacture battery packs for other consumers as well as for parent firm.

Owing to the association Mahindra is expecting to access the advanced battery technology. India aims to electrify all the vehicles to control the air pollution caused by vehicle running on fuel. The new association will accelerate the business for electric cars and also earn government incentives.

Rising air pollution by vehicles, running in fossil fuel has led various market players to come up with their electric cars. Various players like Hyundai, Maruti Suzuki have tied with other companies supplying the components. In 2016, state-controlled Energy Efficiency Services awarded Mahindra and Tata Motors with a contract worth $173 million to substitute the vehicle running on diesel and petrol by public servant. As per the contract 10,000 electric vehicles have to be supplied in coming four years.

Mahindra is expected to manufacture all the major components utilized in an electric car domestically and around 6 billion rupees investments for technology and components. With various help from government, Mahindra as one of the early entrant to electric car business will see a boom in its business and also impact the Asia Pacific business.

— Vasundhra Singh,
Assistant Research Executive,
Infoholic Research