Ashok Leyland Ltd., India’s second-largest truck and bus manufacturer, has partnered with China’s third-largest battery maker, CALB Group Co., to advance its lithium-ion battery capabilities. The Chennai-based company signed a 20-year agreement with CALB earlier this month and will initially import cells while learning to assemble them into battery packs, said CEO Shenu Agarwal. Over time, Ashok Leyland aims to design and manufacture lithium-ion batteries domestically.
The collaboration could set an example for other major Indian conglomerates, such as Reliance Industries and JSW Group, which are also seeking Chinese partnerships for battery technology not yet available locally. Agarwal emphasised, “We are not really an EV player if 70 per cent of the components come from outside,” and added that the company plans to collaborate with multiple partners to master the battery value chain.
Under the tie-up, Ashok Leyland plans to invest over ₹50 billion ($563 million) over seven to ten years to produce next-generation batteries for vehicles and grid-scale storage. Initially, CALB will supply cells while Ashok Leyland develops expertise in pack assembly, heat management, and software integration, with guidance from the Chinese firm. Agarwal noted, “Process is even more important than technology in the beginning,” highlighting a cautious, phased approach.
The company aims to eventually supply battery packs to other automakers, including two- and three-wheelers, and for energy storage systems within two to three years. An India-based R&D hub will focus on battery innovation, packaging, and materials science, with CALB in a supportive role.
India is expected to become the third-largest battery market globally, with demand projected to grow 19 times by 2035. Agarwal believes a phased learning strategy will place Ashok Leyland ahead of rivals who rushed into cell manufacturing. “Batteries are a black box today. No one currently understands batteries in India. This technology needs a lot of patience,” he said.
The partnership reflects a growing trend among Indian industrial giants to tap Chinese expertise while working towards strategic self-reliance in green technology.
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