Tata Group Announces ₹12,000 Crore EV Battery Expansion Plan

In a significant boost to India’s clean mobility ambitions, the Tata Group has announced a ₹12,000 crore investment to expand its electric vehicle (EV) battery manufacturing capacity. The expansion, revealed on February 18, 2026, aims to accelerate domestic production of lithium-ion batteries and reduce reliance on imports.

The project will be led by Tata Chemicals in collaboration with Tata Motors, strengthening vertical integration across the EV value chain. The new giga-facility is expected to be set up in Gujarat, with production scheduled to begin by late 2027.

According to company officials, the investment will nearly double the group’s current battery production capacity. The expansion aligns with India’s broader push toward electric mobility under government incentive schemes, including production-linked incentives (PLI) for advanced chemistry cell manufacturing.

Industry experts believe this move will significantly lower EV manufacturing costs in the long run. At present, battery packs account for nearly 35–40 percent of an electric vehicle’s total cost. By localizing battery production, Tata aims to improve affordability and boost adoption rates across both passenger and commercial vehicle segments. The announcement comes at a time when EV demand in India is witnessing steady growth. Tata Motors continues to dominate the domestic electric passenger vehicle market with models like the Nexon EV and Tiago EV. With expanded battery capacity, the company plans to introduce new long-range models targeting both urban and semi-urban consumers.

The project is expected to generate over 5,000 direct and indirect jobs, offering opportunities in engineering, research, and manufacturing. Additionally, the group plans to invest in research for next-generation solid-state battery technology to improve energy density and charging speed.Market analysts view the investment as a strategic step to position Tata as a global EV player. As international competition intensifies, strengthening domestic manufacturing capabilities could enhance export potential in emerging markets across Southeast Asia and Africa.

With sustainability becoming a core business priority, the expansion underlines Tata Group’s commitment to green energy and long-term growth. The move is likely to attract further investments into India’s EV ecosystem, reinforcing the country’s ambition to become a global hub for electric mobility manufacturing.