Foxconn likely to open second-largest battery plant in Tamil Nadu

02 Dec 2024 CW Team

Foxconn, India’s leading contract manufacturer, is expected to establish the world’s second-largest Battery Energy Storage System (BESS) in Tamil Nadu. The state government has reportedly offered 200 acres of land near Manalur in the Tiruvallur district, approximately 50 kilometers from Chennai, along with an incentive package to support the project. Negotiations are said to be in their final stages, aligning with Foxconn Chairman Young Liu’s discussions during his recent visit to India.

The Tamil Nadu government has proposed a strategic site and incentive package to encourage Foxconn’s investment. Chairman Liu, who visited India in August 2024, highlighted the company’s plans to expand operations beyond smartphones, focusing on electric vehicles (EVs), energy, and digital health.

“Battery energy storage is a key component of our EV strategy,” Liu stated during his visit, emphasizing Foxconn’s commitment to its ‘3+3 Future Industry’ initiative. This strategy targets three core industries — EVs, digital health, and robotics — which collectively represent a $1.4 trillion market with an annual growth rate exceeding 20%.

Foxconn’s efforts in BESS are primarily geared toward supporting the EV market. During the company’s Q3 earnings call on November 14, Liu announced nearing completion of its first battery storage unit in Taiwan, though mass production has been delayed to early 2025 due to typhoon disruptions.

By choosing Tamil Nadu for its second-largest BESS facility, Foxconn aims to leverage India’s growing EV market while strengthening its presence in the energy sector. The potential project signifies a crucial step in diversifying Foxconn’s portfolio and advancing its role in next-generation industries.

(Business Standard)

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