Maruti Suzuki plans to replace lead batteries with lithium-ion batteries

Suzuki Corp is setting up lithium-ion battery manufacturing plant in Gujarat to improve the quality of batteries as well as mitigate adverse effects of rising lead prices.

Lead prices are in the upward trend and pose environmental threats. Further, rising awareness about electric vehicles will drive demand for lithium ion batteries going forward. The life of lead battery is around one year, while lithium batteries have a lifespan of five years.

However, the cost of lithium batteries is higher as compared to lead batteries. The lithium ion batteries cost around Rs. 16,000, while lead batteries cost around Rs. 10,000. So manufacturing them rather than sourcing it from vendors will provide economies of scale to Maruti Suzuki.

The company holds 50 per cent market share in India’s car sales market. This unit will also benefit other car makers as it will be the first lithium-ion battery manufacturing capacity in India and will provide the benefit of domestic sourcing, as currently, most automakers import batteries from China.

The stock is currently trading in positive with marginal gains at Rs. 9,391 per share at 10:49 hours, on Friday.