In a landmark development for India’s electric vehicle ecosystem, Mercury EV-Tech has inaugurated a cutting-edge 3.2 gigawatt (GW) battery manufacturing facility in Vadodara, Gujarat. This state-of-the-art plant represents one of the largest investments in domestic battery production and signals a significant leap forward in India’s journey toward self-reliance in clean energy technology.
The facility, spread across 25 acres in the industrial hub of Vadodara, marks a crucial step in addressing one of the most persistent challenges in India’s electric mobility transition: domestic battery production capabilities. With an annual capacity of 3.2 GW, the plant is positioned to substantially reduce the country’s dependence on imported battery cells while creating thousands of skilled jobs in the emerging green economy.
Strategic Significance for India’s EV Ambitions
India has set ambitious targets for electric vehicle adoption, aiming for 30% of new vehicle sales to be electric by 2030. However, battery imports have remained a significant bottleneck, with over 80% of battery cells currently imported from countries like China, South Korea, and Japan.
| Aspect | Before Mercury’s Plant | After Full Operation |
|---|---|---|
| Domestic Cell Manufacturing Capacity | ~5 GW | ~8.2 GW |
| Cell Import Dependency | >80% | Potential reduction to ~65% |
| Battery Cost Impact | Higher due to import duties | Expected 8-12% reduction |
| Supply Chain Vulnerability | High exposure to global disruptions | Improved resilience |
| Local Value Addition | Limited | Significant increase |
“This facility represents more than just manufacturing capacity—it’s a strategic asset for India’s clean energy transition,” explains Rajesh Mehta, CEO of Mercury EV-Tech. “By localizing critical battery technology, we’re not only creating jobs but also building the foundation for innovation and cost competitiveness in India’s EV ecosystem.”
Technical Capabilities and Production Focus
The Vadodara facility incorporates advanced manufacturing technologies and automation systems to ensure high efficiency and quality consistency. Key technical highlights include:
Battery Technologies
- Lithium-ion NMC (Nickel Manganese Cobalt) cells
- LFP (Lithium Iron Phosphate) cells
- Advanced battery management systems
- Multiple form factors including cylindrical, prismatic, and pouch cells
Production Facilities
- Fully automated cell assembly lines
- Clean room environments for sensitive manufacturing processes
- Advanced quality control systems with AI-powered inspection
- Material recycling capabilities for sustainable production
The facility is designed to serve multiple market segments including electric two and three-wheelers, passenger vehicles, commercial vehicles, and stationary energy storage systems. This diversification strategy allows Mercury EV-Tech to address various needs within India’s growing clean energy ecosystem.
Investment and Employment Impact
Mercury EV-Tech’s commitment to domestic manufacturing comes with significant investment and employment benefits:
| Category | Details |
|---|---|
| Total Investment | ₹1,200 crore (Phase I) |
| Projected Additional Investment | ₹800 crore (Phase II, 2026-2027) |
| Direct Employment | 1,500 skilled workers |
| Indirect Employment | ~3,000 jobs in supply chain |
| R&D Investment | ₹150 crore over five years |
| Technology Partners | Collaborations with German and South Korean firms |
The company has implemented specialized training programs in partnership with local technical institutions to develop the skilled workforce required for advanced battery manufacturing, addressing a critical skills gap in India’s manufacturing ecosystem.
Policy Support and Government Initiatives
The establishment of Mercury EV-Tech’s facility aligns with several government initiatives aimed at boosting domestic manufacturing:
- Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage
- Faster Adoption and Manufacturing of Electric Vehicles (FAME) India Scheme
- Gujarat Electric Vehicle Policy 2021
- Make in India initiative
“Mercury EV-Tech’s investment demonstrates the growing confidence in India’s electric mobility future,” noted a senior government official during the inauguration ceremony. “This facility will play a pivotal role in creating a robust supply chain for electric vehicles and energy storage systems in India.”
Environmental and Sustainability Focus
Beyond manufacturing capabilities, Mercury EV-Tech has incorporated significant sustainability features into the facility:
- 5 MW rooftop solar installation to offset energy requirements
- Zero liquid discharge water management system
- Battery recycling capability to recover critical materials
- Heat recovery systems to improve energy efficiency
- Smart building management for optimized resource usage
These features align with both global best practices and India’s commitment to reducing the environmental footprint of industrial operations.
Future Expansion Plans
The current facility represents Phase I of Mercury EV-Tech’s broader manufacturing strategy. The company has outlined plans for expansion:
- Phase II capacity addition of 2.8 GW by 2027
- Research center for next-generation battery technologies
- Integrated recycling facility for end-of-life batteries
- Potential export capabilities to serve emerging markets in South and Southeast Asia
“We see this facility as just the beginning,” explains Mehta. “As technology evolves and demand grows, we’re positioned to scale our operations and innovation capabilities to meet the needs of India’s expanding clean energy ecosystem.”
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FAQs About Mercury EV-Tech’s Battery Manufacturing Facility
What is the production capacity of Mercury EV-Tech’s new facility?
The Vadodara facility has an initial annual production capacity of 3.2 gigawatts (GW), with plans to expand to 6 GW in Phase II by 2027. This makes it one of the largest battery manufacturing plants in India.
What types of batteries will be manufactured at this facility?
The plant is designed to produce multiple battery chemistries including Lithium-ion NMC (Nickel Manganese Cobalt) and LFP (Lithium Iron Phosphate) cells in various form factors such as cylindrical, prismatic, and pouch cells. This versatility allows Mercury EV-Tech to serve different market segments including two-wheelers, passenger vehicles, and energy storage systems.
How will this facility impact India’s EV ecosystem?
The facility is expected to reduce dependency on imported battery cells, potentially lowering battery costs by 8-12% for domestic manufacturers. This cost reduction, combined with improved supply chain resilience, could accelerate EV adoption in India while creating thousands of skilled jobs in the green economy.
What sustainability features are incorporated into the facility?
Mercury has implemented numerous sustainability initiatives including a 5 MW rooftop solar installation, zero liquid discharge water management system, battery recycling capabilities, and energy-efficient building management systems. These features align with global best practices for environmentally responsible manufacturing.
How does this facility align with government policies?
The facility directly supports several government initiatives including the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell Battery Storage, the FAME India Scheme, Gujarat’s EV Policy, and the broader Make in India initiative. These policies provide financial incentives and regulatory support for domestic battery manufacturing.
Conclusion: A Milestone in India’s Clean Energy Journey
Mercury EV-Tech’s Vadodara facility represents more than just a manufacturing plant—it symbolizes India’s growing capabilities in advanced technology production and its commitment to clean energy transition. By addressing the critical battery manufacturing gap in the domestic EV ecosystem, Mercury is helping to build a more resilient, self-reliant, and sustainable mobility future for India.
As electric vehicles continue to gain momentum across the country, domestic battery production will play an increasingly vital role in determining the pace and scale of adoption. With significant production capacity, advanced technical capabilities, and a focus on sustainability, Mercury EV-Tech’s facility stands as a landmark achievement in India’s journey toward cleaner, more affordable transportation and energy solutions.
The road to electric mobility in India has been challenging, but with investments like this, the country is accelerating toward a future where electric vehicles are not just an alternative but the mainstream choice for millions of Indians.
