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Tesla Proposes Battery Factory in India

Updated: Jan 9

Tesla, the electric vehicle (EV) giant, has put forward a proposal to construct a battery storage factory in India, according to sources familiar with the matter.

Tesla Proposes Battery Factory in India
Credits: REUTERS

The company has also sought incentives from Indian officials to support the establishment of the factory.

This move comes as Tesla continues its efforts to enter the Indian market, with discussions being overseen directly by Prime Minister Narendra Modi.

While Tesla has been in talks about setting up an EV factory in India for weeks, its plans for battery storage systems have not been previously reported. In recent meetings in New Delhi, the company proposed using its "Powerwall" system to enhance India's battery storage capabilities. The Powerwall is designed to store power from solar panels or the grid for use during outages or at night.

Although Tesla requested incentives for the battery storage factory, Indian officials have indicated that these incentives may not be available. However, the government could potentially offer subsidies to customers purchasing Tesla's battery storage products, thereby creating a fair business model for the company.

While both Tesla and the Indian government are interested in the proposal, it is uncertain whether the plan will come to fruition. The Powerwall proposal is part of Tesla's broader strategy to expand its presence in India beyond EVs. The company aims to find residential and industrial customers for its battery storage systems.

India has been working to increase its non-fossil fuel power capacity and reduce its dependence on coal-based power generation. The country aims to reach 500 GW of non-fossil fuel power capacity by 2030. However, storage technologies are still expensive and not widely adopted in India.

Tesla's Powerwall, a sleek unit designed for domestic and light commercial use, could potentially be developed into larger solutions for industrial applications if the plan in India is successful. Indian officials have also emphasised the need for Tesla to reduce the cost of its battery storage products to unlock the market, as demand is expected to be high.

Neither Tesla nor the Indian government have provided any official comments on the matter at this time.

  • Tesla has proposed building a battery storage factory in India.

  • The company has sought incentives from Indian officials for the establishment of the factory.

  • The proposal includes using Tesla's Powerwall system to enhance India's battery storage capabilities.


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