Tata Motors looks beyond group to source EV batteries

Tata Motors Ltd will source battery packs for its passenger electric vehicles (EVs) from Octillion Power Systems, a major battery pack maker in China, two people with direct knowledge of the matter said, ending the practice of buying them solely from group company Tata AutoCompSystems Ltd.

Tata Motors’ latest Curvv coupe SUV will feature lithium-ion battery packs from California-headquartered Octillion, which has operations in the US and India. This is the first time Tata Motors is tapping an external battery supplier since it rolled out its flagship NexonEVin2020.

Also read | Tata Motors aims to match ICE rivals’ prices to revitalize its EV sales with new Curvv SUV

The decision comes against the backdrop of a challenging EV market for Tata Motors. The shift also aims to address performance issues, such as a state-of-charge drop observed in some previous models, by incorporating new battery pack designs and cell types. The move helps India’s largest EV maker diversify its supply and technology base as it expands into new EV categories.

New non-group supplier 

Octillion installed a 2GWh battery pack capacity in Pune in India just last year. For the 45kWh variant of the Curvv EV, Tata Motors has selected Octillion’s battery packs, with EVE, another Chinese firm, providing the 15.2Ah cylindrical cells.

The larger 55kWh variant of the Curvv EV will continue to use battery packs from Tata AutoComp, featuring 105Ah prismatic cells supplied by Gotion.

So far, battery packs for Tata Motors’ passenger EVs were made solely by group firm Tata AutoComp Systems using cells sourced from China’s lithium-ion cell technology major Gotion via its joint venture partnership with the company.

Battery type

The choice between cylindrical and prismatic cells is dictated by the specific requirements of the battery pack design, including considerations of energy density, thermal management and packaging flexibility.

“We have built capacity to keep pace with this growth momentum and are working with multiple supplier partners. Adopting such a multi-sourcing strategy hedges supply chain risks, mitigates dependency on a single supplier and improves competitiveness for timely and seamless supply of required parts,” a Tata Motors spokesperson said in response to Mint’s email. “Rising customer preference for future-ready, zero-emission technology has seen EV sales grow rapidly in the last few years (total industry volume going up from ~6,000 in FY21 to ~100,000 in FY24).”

The company has a range of four passenger EVs in the market—the Nexon, Tiago, Punch and now the Curvv. Its compact sedan, the Tigor EV, is offered in the fleet segment as the Xpres-T.

Interestingly, while Tata Motors has been using Octillion’s battery packs for its Starbus EV for over two years, this will be the first time these packs are employed in a passenger EV.

Pure EV architecture

Tata Motors started delivering the Curvv EV last week, while the waiting period for the product ranges from six to eight weeks at present. The car is built on its pure EV architecture acti.ev (Advanced Connected Tech-Intelligent Electric Vehicle) and can deliver a range of up to 585km on a single charge with its 55kWh variant. The EV is also built on an all-new modular platform, with both the variants of the EV using newly designed battery packs.

Also read | The ICE age will last: The road to EV adoption looks bumpy

The automaker’s decision comes amid an industry-wide slump in EV sales and a competitive landscape where Tata Motors is aggressively pricing its EVs to match the prices of rivals’ conventional vehicles. The strategy aims to bolster the appeal of Tata’s electric offerings at a time when the company faces headwinds, including a pullback of government subsidies on electric four-wheelers sold to commercial fleets and subdued demand for electric passenger vehicles.

In the first quarter of fiscal year 2025 (April-June), Tata Motors saw a 14% year-on-year decline in EV sales, with just 16,579 units sold.