Multiple firms get into Li-ion cell production amid rising demand

Multiple companies are setting up lithium-ion cell manufacturing plants to cater to high demand from contract manufacturers who assemble consumer electronics products such as smartphones, laptops, wearables and more.

Chennai-based lithium-ion (Li-ion) cell manufacturer Munoth Industries has entered into a joint-venture agreement with China-based Zhuhai CosMX Battery, which supplies batteries for Apple iPhones, executives familiar with the matter said.

The venture, which is subject to regulatory approvals, plans to invest Rs 500 crore initially to create capacities at the Indian partner’s existing Tirupati campus where it is already making Li-ion cells for power banks, purchased by US-based Anker, among others.


Early this month, Japan’s TDK Corporations opened an advanced Li-ion battery manufacturing plant in Sohna, Haryana, with a capacity to produce 200 million battery packs annually.

Contract manufacturer Dixon Technologies has also incorporated a wholly owned subsidiary, Dixon Electrocorp, to
manufacture “all kind of electronic related products including batteries, lithium-ion battery, Li-ion battery cell, Li-ion cells for digital applications, battery pack and battery modules, related products, equipment and components thereof,” according to an exchange filing.

Industry executives aware of the development said Dixon will invest Rs 500-600 crore in a new facility to produce Li-ion cells for captive consumption as well as to supply to other parties.

India’s mobile phone manufacturing industry requires 30 million cells a month for both domestic consumption and exports, one of the executives said. Domestic requirement is around 8-10 million, he added.

The government’s Rs 22,000-crore Electronics Component Manufacturing Scheme (ECMS) to promote component manufacturing has earmarked 4-6% incentives for lithium-ion cells (excluding storage and mobility), based on incremental sales turnover. There are no capital subsidies offered for this segment.

CosMX, publicly listed in China, will own a 26% stake in Munoth Lithium Battery Pvt Ltd, its proposed joint-venture with Munoth, executives cited above said.

As part of the agreement, Munoth will manufacture Li-ion cells for use in mobile phones, while CosMX will use the cells for their 7,200 square-metre packaging unit in Chennai. CosMX is part of the list of Apple suppliers in China. In India, CosMX’s battery packs are sourced by top mobile phone brands including Vivo, Oppo, Xiaomi, and others, executives said.

The company makes battery packs for consumer electronics including mobiles, laptops, wearables, drones, and appliances.

The joint-venture unit has applied for incentives under the ECMS, which will close for applications on September 30.

Under the JV agreement signed in China, CosMX will transfer technology to Munoth for making proprietary cells for mobile phones. The entirety of Munoth’s production will be purchased by CosMX.