Tata Group has signed a Memorandum of Understanding (MoU) with the Govt. of Gujarat to set up a lithium-ion cell manufacturing plant in the state. The new plant will be set up at an initial investment of Rs 13,000 crore and will have a production capacity of 20 gigawatt-hours (GWh), the Gujarat government said in a statement on Friday.

The MoU was signed by Vijay Nehra, the Secretary of Science and Technology, Government of Gujarat, and Rakesh Ranjan, the CEO of Agratas Energy Storage Solutions Pvt Ltd, a subsidiary of the Tata Group in the presence of Gujarat Chief Minister Bhupendra Patel.

"This initiative by the Tata Group to establish the Giga Factory marks a significant milestone for Gujarat, as it will not only create India's first lithium-ion cell manufacturing plant but also position the state as a prominent player in this industry," Patel said.

The plant is said to be the first to manufacture lithium-ion cells in India and will be in Sanand, where Tata already owns two passenger vehicle manufacturing facilities following its recent takeover of Ford’s plant.