Tesla Reportedly Eyes Battery Storage Factory in India
Tesla has submitted plans to Indian officials for the construction of a battery storage factory in the country, according to sources familiar with the matter, reports Reuters.
The proposal comes as Tesla is also in discussions with the Indian government about setting up an electric vehicle (EV) factory to produce a $24,000 car, overseen directly by Prime Minister Narendra Modi.
“In recent meetings in New Delhi, Tesla proposed supporting the country’s battery storage capabilities with its ‘Powerwall’,” said the sources, who requested anonymity due to the confidential nature of the discussions.
The Powerwall system, designed to store energy from solar panels or the grid, is part of Tesla’s broader strategy to expand its presence in India beyond electric vehicles. However, Indian officials have indicated that the requested incentives for setting up the factory are not available. Despite this, the government is considering creating a fair business model for Tesla by offering subsidies to consumers of such products.
The proposal remains under review, and it is uncertain whether it will come to fruition. “Large policy level calibration will be required. Tesla’s intent is to have the Powerwall business in India,” one source stated.
India faces challenges in meeting its growing energy demands, especially during peak times. The country aims to increase its non-fossil fuel power capacity to 500 GW by 2030, up from the current 186 GW. Last year, India experienced its worst power crisis in over six years due to issues with coal transportation.
During a 2015 visit to Tesla’s California campus, Prime Minister Modi reviewed the Powerwall product and discussed its potential applications for Indian farmers. Indian officials have also suggested that Tesla should work on reducing the cost of its battery storage products to unlock the high-demand market in India.