VSL PowerHive, a wholly owned subsidiary of Vikram Solar, plans to establish a 7.5 GWh per annum Battery Energy Storage System (BESS) assembly facility at Oragadam near Chennai in Tamil Nadu. The plant is scheduled for inauguration in January 2027, with commercial operations expected to begin in April 2027. It will initially cover approximately 165,000 square feet and can be expanded to 15 GWh in subsequent phases.

The facility forms part of Vikram Solar’s plan to develop 30 GWh of total battery manufacturing capacity by 2030. The company is also planning a 7.5 GWh battery cell manufacturing programme from 2028, with the aim of creating an integrated domestic ecosystem covering cells and complete energy storage systems.

The Oragadam plant will manufacture lithium iron phosphate-based BESS products for utility-scale and commercial and industrial applications. Its planned portfolio includes 5.016 MWh and 6.25 MWh liquid-cooled BESS containers, PowerHive P261 battery cabinets, utility-scale storage systems and renewable energy-integrated storage solutions. The operations will be developed under the Make in India initiative.

The expansion comes as India increases its solar and wind power capacity and requires storage to manage renewable power variability, support grid stability and shift surplus electricity to periods of peak demand. Projections from the Central Electricity Authority indicate that the country will require approximately 47 GW of energy storage power capacity and 236 GWh of storage capacity by 2031–32, creating opportunities for domestic manufacturers and reducing dependence on imported technologies.

VSL PowerHive is developing indigenous battery technologies and has initiated several patent filings to strengthen its intellectual property portfolio. Vikram Solar chairman and managing director Gyanesh Chaudhary said the facility would extend the company’s clean energy activities beyond solar generation technologies, while chief executive Arun Mittal said the phased expansion would build advanced domestic manufacturing capabilities. The project is also expected to create skilled employment, develop local expertise and support Tamil Nadu’s clean technology manufacturing ecosystem.