N Chandrasekaran reveals Tata Group’s plan for chip making and EV Batteries

At an event in Mumbai Tata Sons Chairman, N Chandrasekaran has revealed its plans for the semiconductors space.

He said apart from chip making, the group is planning to manufacture batteries for electric vehicles (EVs) and it will be announced soon.

It is noteworthy that in Tata Motors Limited’s annual report, he also mentioned evaluating partnerships for cell and battery manufacturing in India and Europe.

The plans of Tata Group are in line with Prime Minister’s goal to make the country a leader in semiconductor manufacture and minimise its dependency on imports in the face of global supply chain disruptions.

According to previous reports several foreign chip giants, including Intel Corp. and Taiwan Semiconductor Manufacturing Co., are looking into setting up a base in India.

Automobile and electronics manufacturers throughout the world are dealing with semiconductor scarcity, which has been compounded by pandemic-caused lockdowns in China, in turn hampering the industries by rising input costs.

To deal with the shortage of semiconductors, Tata Motors is opting for premium freight, looking for alternate chips, and purchasing them on the open market, according to Chandrasekaran.

According to him, for at least six months the scarcity will continue and the fourth quarter will be more uncertain than the previous year.

A government official, meanwhile, said Tata is in talks with Tamil Nadu about establishing a chip-making facility and the state has proposed Coimbatore as the location for the factory, while the group is still in talks with other southern states like Karnataka and Telangana.

The group has also announced its plans to manufacture batteries for EVs

Tata also announced plans to manufacture batteries for EVs, promising more information about the venture at a later date.

Though Chandrasekaran did not provide specifics, he stated that the company “will not be limited in our journey towards EV leadership by what is required in terms of capital, talent, and a robust supply chain”.

However, Tata Motors’ managing director of passenger vehicles and Tata Passenger Electric Mobility, Shailesh Chandra, reportedly said that the company currently imports certain components of an EV battery, such as cells, and assembles the battery pack locally.

At the event, Chandrasekaran said, “We also assemble modules, and are in the process of indigenously developing the battery management system. In fact, a lot of things that go into making a battery pack are being localised, but the cell will take some time.

“The good thing is the government is also actively involved in this, with steps such as the ACC-PLI, so there will be a capacity that will be developed over time,” he added.