Tata's Agratas Eyes $500 Million Green Loan for Sustainable Battery Factories

18 Jan 2024 , 12:42 PM

Agratas Energy Storage Solutions Pvt Ltd. is in discussions with a consortium of banks to secure up to $500 million through a green loan, as reported by anonymous sources familiar with the matter.

The company, a wholly-owned subsidiary of Tata Sons Pvt Ltd, specializes in the development of battery cells and operates factories in India and the U.K. Notably, its facilities are designed to be powered by clean energy sources, aligning with sustainable practices.

The potential green loan, with a tenor likely exceeding five years, aims to fund Agratas’ factories, according to undisclosed sources.

The Indian government, led by Prime Minister Narendra Modi, is actively working to enhance technological capabilities in various sectors, including semiconductors, solar panels, and pharmaceuticals. This initiative has garnered support from countries like the United States, aiming to diversify supply chains and reduce reliance on China’s economic dominance.

Gujarat, the coastal state in India where Prime Minister Modi hails from, has attracted significant investments. Tata, in the previous year, announced plans to establish a 20 gigawatt-hour lithium-ion battery plant in the state.

Despite these developments, a representative from Tata Sons declined to comment on the matter when approached by Bloomberg. It is worth noting that the terms of the proposed deal are subject to potential changes.

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