IBC Plans To Raise USD 15 Mn For Battery Cell Plant In India According to the investors in the segment, opening a cell factory in India will be challenging in terms of infrastructure, logistics and required materials.
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With an objective to build its first plant in India for manufacturing lithium-ion battery cells, International Battery Company is planning to raise USD50 million. In June 2023, IBC had set up a pilot factory in South Korea to refine the cell design and production process.
This will be the second round of the company. It secured USD 35 million at a valuation of USD130 million in January, with a Korean strategic investor, RTP Global, Beenext and Shastra VC driving the deal.
For the latest raise, IBC initially targeted USD 85 million from new investors. However, the figure was adjusted to USD 50 million because new investors said they would prefer to first see the India plant operational before supplying growth capital.
The battery cells IBC developed in South Korea were tested with original equipment manufacturers in India. In the next phase, it will replicate production in India and scale up the operation to fulfil local demand.
According to the investors in the segment, opening a cell factory in India will be challenging in terms of infrastructure, logistics and required materials.
However, the government is keen to promote electric vehicles and aims to get 30 per cent of four-wheelers and 80 per cent of two- and three-wheelers by 2030. It has waived customs duty on the machinery used in production, while several states have announced incentives for battery players.
IBC is known for its advanced lithium-ion cells using nickel manganese cobalt chemistry. It claims that the patented cell technology (NMC-622/Graphite) offers higher energy density and improved thermal stability, making it well-suited for Indian roads.
Ola Electric, Mahindra & Mahindra, Toyota and Honda are also moving to NMC cell manufacturing. For context, the most popular cell manufacturer LG uses NMC-811/Graphite technology which is comparatively higher in energy density but lower in battery life.
