Lithium-ion battery manufacturer Neuron Energy plans to diversify its business by expanding its Energy Storage Systems (ESS) business over the next five years.
Neuronal energy, which is likely to record revenues of 130-150 Rs this year, is known for its lithium-ion batteries and chargers.
The company’s batteries are used in electric motorcycles, three-wheeled vehicles, light commercial vehicles, electric vehicles and drones. If we move on, the company plans to expand to larger vehicles such as buses and trucks.
The company imports lithium-ion cells from China, assembles them to make batteries in Kapashera, contract manufacturing in Noida, and manufactures Pune plants.
Currently, around 95% of Neuron Energy’s revenue comes from the electric mobility segment, with only 5% remaining in the energy storage system.
The company’s co-founder and CEO Pratik Kamdar said the company is more than doubled its revenues next year to more than Rs 300, reaching Rs 1,500 by 2030. By then, he said he expects the mobility business to contribute to 50-70% of the top line and to tip at 30-45%.
To achieve this growth, the battery solution provider is in the process of installing a new factory with an annual production capacity of 2 GWH, spreading over five acres in Pune by April this year.
Furthermore, revenue estimates are purely for the domestic market and do not take into account the benefits from exports that you would like to start immediately. Among the initial markets are the Middle East and Africa, which aim to enter by 2026.
“Exports will be a good market, especially in the Middle East and Africa where Indian products are well-received,” Kamdar said.
“S is on the rise in both Africa and mobility.
Indian Market
Despite export plans, much of the growth comes from a steady shift from India’s ice to EVs. “Demand for EVS is rising rapidly, and sales of electric motorcycles are rising rapidly,” he said. He added that adopting electric rickshaws is also quick.
Looking ahead, the company predicts that over 50% of light commercial vehicles (LCVs), three-wheel cargo and cars will become electricity in the next three to four years.
However, he believes that pricing and supply chain pressures still pose hurdles to adopting EV adoption faster as the industry relies heavily on China for battery cells and other key components.
Another factor that contributes to the high prices of lithium-ion batteries is tax. Kamdar explained that while electric vehicles are taxed at 5% GST, batteries are taxed much higher at 18% despite being a key factor. This has resulted in the capital being GST credits of many original equipment manufacturers (OEMs). Manufacturers pay 18% GST when purchasing batteries, but when selling a fully electric vehicle that contains batteries, GST can only collect 5%. This generates GST credits that are beneficial to tax authorities manufacturers, but may not be easy for OEMs to use.
Meanwhile, the central government is pushing to make India the largest exporter of lithium-ion batteries by the end of the decade. To achieve the goal of setting a manufacturing capacity of 100-150 GWH per year, the government has deployed a Production Related Incentive (PLI) scheme of 18,100 crores of Advanced Chemical Cells (ACC).
To enhance domestic production of EV batteries and help the growth of the Indian electric vehicle market, the Centre recently announced plans to exempt basic tariffs on 35 additional capital goods used in the manufacture of lithium-ion batteries and tax exemptions for key minerals such as cobalt and copper.
