Ashok Leyland Partners with China’s CALB to Build EV Battery Skills

30 Sep 2025 CW Team

Initially, Ashok Leyland will import cells from CALB while learning to assemble them into battery packs. The company plans to progressively gain the capability to design and manufacture lithium-ion batteries domestically, according to CEO Shenu Agarwal.

The collaboration, if successful, could serve as a model for other Indian conglomerates, such as Reliance Industries Ltd. and the JSW Group, which are pursuing similar partnerships with Chinese battery firms. India aims to leverage Chinese expertise to accelerate green energy adoption while maintaining strategic self-reliance.

Agarwal said, “We are not really an EV player if 70 per cent of the components come from outside,” signalling plans to partner with additional firms to master the battery value chain. As part of the CALB tie-up, Ashok Leyland intends to invest more than Rs 50 billion ($563 million) over seven to ten years to produce next-generation batteries for vehicles and energy storage systems.

Initially, CALB will supply cells while Ashok Leyland focuses on developing pack-assembly expertise, including thermal management and software integration, under CALB guidance. The company is taking a cautious, phased approach, noting that process efficiency is as critical as technology in battery production.

Ashok Leyland aims to supply battery packs for its own vehicles first, then expand to other automakers, including two- and three-wheelers, as well as grid-scale storage, within two to three years. The company also plans an India-based research and development hub for battery innovation, packaging, and materials science, with CALB providing supportive guidance.

The long-term goal is to fully design and develop lithium-ion cells in India, a milestone expected to take at least five years. Agarwal emphasised that the phased learning strategy will position Ashok Leyland ahead of rivals that rushed into cell manufacturing.

India is projected to become the world’s third-largest battery market, with demand expected to grow 19-fold by 2035, according to BloombergNEF.

Ashok Leyland Ltd., the flagship firm of the billionaire Hinduja family, is collaborating with China’s third-largest battery maker, CALB Group Co., to gradually master lithium-ion cell technology. The Chennai-based truck and bus manufacturer signed a 20-year agreement with CALB earlier this month.Initially, Ashok Leyland will import cells from CALB while learning to assemble them into battery packs. The company plans to progressively gain the capability to design and manufacture lithium-ion batteries domestically, according to CEO Shenu Agarwal.The collaboration, if successful, could serve as a model for other Indian conglomerates, such as Reliance Industries Ltd. and the JSW Group, which are pursuing similar partnerships with Chinese battery firms. India aims to leverage Chinese expertise to accelerate green energy adoption while maintaining strategic self-reliance.Agarwal said, “We are not really an EV player if 70 per cent of the components come from outside,” signalling plans to partner with additional firms to master the battery value chain. As part of the CALB tie-up, Ashok Leyland intends to invest more than Rs 50 billion ($563 million) over seven to ten years to produce next-generation batteries for vehicles and energy storage systems.Initially, CALB will supply cells while Ashok Leyland focuses on developing pack-assembly expertise, including thermal management and software integration, under CALB guidance. The company is taking a cautious, phased approach, noting that process efficiency is as critical as technology in battery production.Ashok Leyland aims to supply battery packs for its own vehicles first, then expand to other automakers, including two- and three-wheelers, as well as grid-scale storage, within two to three years. The company also plans an India-based research and development hub for battery innovation, packaging, and materials science, with CALB providing supportive guidance.The long-term goal is to fully design and develop lithium-ion cells in India, a milestone expected to take at least five years. Agarwal emphasised that the phased learning strategy will position Ashok Leyland ahead of rivals that rushed into cell manufacturing.India is projected to become the world’s third-largest battery market, with demand expected to grow 19-fold by 2035, according to BloombergNEF.

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