Munoth-CosMX joint-venture to ramp up lithium-ion manufacturing in India

Core Insights - Multiple companies are establishing lithium-ion cell manufacturing plants to meet the increasing demand from contract manufacturers in the consumer electronics sector, including smartphones and laptops [6] Company Developments - Chennai-based Munoth Industries has entered a joint venture with China's Zhuhai CosMX Battery, which supplies batteries for Apple iPhones, planning an initial investment of ₹500 crore to expand its Tirupati campus [6] - Dixon Technologies has formed a wholly owned subsidiary, Dixon Electrocorp, to manufacture various electronic products, including lithium-ion batteries, with an investment of ₹500-600 crore for a new facility [4][6] - Japan's TDK Corporation has opened a new advanced Li-ion battery plant in Sohna, Haryana, with a production capacity of 200 million battery packs annually [6] Market Demand - India's mobile phone manufacturing industry requires approximately 30 million lithium-ion cells per month for both domestic consumption and exports, with domestic demand estimated at 8-10 million cells [5][6] Government Initiatives - The Indian government has launched a ₹22,000-crore Electronics Component Manufacturing Scheme (ECMS) to promote component manufacturing, offering 4-6% incentives for lithium-ion cells based on incremental sales turnover, but no capital subsidies are available for this segment [5][6] Joint Venture Structure - CosMX will hold a 26% stake in the proposed joint venture, Munoth Lithium Battery Pvt Ltd, with Munoth Industries [6]