Capital · Asia-Pacific

India to Invest 500 Billion Rupees in BESS by 2033

Credited to TheElec · thelec.net · 22h ago

India is stepping up investment in battery energy storage systems (BESS) to stabilize its power grid. The government plans to invest 500 billion rupees to deploy 50 gigawatt-hours (GWh) of BESS by 2033.

According to industry sources on Oct. 6, the Indian government approved the third phase of the Green Energy Corridor (GEC-III) on Sept. 30. The project will expand transmission networks and BESS in line with the country’s growing renewable energy capacity. India plans to build transmission infrastructure capable of accommodating up to 135 gigawatts (GW) of renewable energy by 2033. It will also install 50 GWh of BESS.

The total project cost is 1.864 trillion rupees. Of that amount, 500 billion rupees has been allocated for BESS deployment. The government has not disclosed detailed conditions for the batteries to be used in the project, including battery chemistry, storage duration and procurement methods. The actual amount spent on batteries and systems could vary depending on those conditions.

On a simple calculation, India will need more than 7 GWh of batteries annually for grid-scale energy storage systems (ESS) alone. But local battery production capacity is only about 2 GWh a year, meaning the country will have to rely heavily on imports. India has largely met demand through imports as it was late to establish a lithium-ion battery manufacturing base. Chinese-made batteries accounted for 75.2% of India’s lithium-ion battery imports in fiscal 2024-25.

According to the India Energy Storage Alliance (IESA), India’s lithium-ion battery production capacity could reach 60 GWh to 70 GWh by 2030 if announced investment plans are implemented as scheduled. Over the same period, capacity for assembling battery packs and BESS using imported cells is expected to rise to 180 GWh to 220 GWh. Local cell production is therefore expected to lag well behind the expansion of BESS manufacturing capacity.

Wood Mackenzie estimates that it will take India 10 to 15 years to build a self-sufficient battery industry with competitive pricing. It estimates that locally produced battery cells will cost 25% to 40% more than imported cells. High financing costs and an underdeveloped battery-materials supply chain are among the reasons. As India needs time to expand domestic battery production, it will have to rely on overseas technology and supply chains for the time being. That could create an opportunity for Korean companies to enter the market.

Indian companies have traditionally worked mainly with Chinese battery makers because of their price competitiveness. But the business environment is changing as political tensions between India and China persist. Korean companies are also seeking opportunities to enter the Indian market. AI battery startup DeltaX signed a memorandum of understanding (MOU) with Toptec in July to cooperate on targeting India’s ESS market.

“India is expanding localization across its renewable energy industry, including requiring the use of domestically produced solar panels,” DeltaX Chief Executive Kim Soo-hoon said. “Local solar and renewable energy companies are also expanding into assembling and selling battery modules and packs for ESS, and are actively considering cooperation with companies outside China.”

The growing adoption of Korean-made battery equipment in India is another positive factor. A key example is a battery plant with annual capacity of 40 GWh being built in India by Agratas, a Tata Group company. A number of Korean battery-equipment makers, including Yunsung F&C, PNT, Philenergy, Hana Technology, J's Robotics and Axvis, have been selected as suppliers for the project.

Business by Korean battery manufacturers in India remains limited. LG Energy Solution and Samsung SDI operate local sales subsidiaries, but their main business is supplying small batteries for smartphones and other information-technology devices. Their operations in India remain small in both scope and scale compared with major overseas markets such as North America and Europe. LG Energy Solution leads among companies in energy-related patents, having filed 2,225 patents in India.

“Indian ESS companies have traditionally sourced battery cells mainly from Chinese companies,” an industry official said. “They also prefer lithium iron phosphate (LFP) batteries, so opportunities for Korean battery companies to enter the Indian market could expand as they increase their LFP-related businesses.”

India also built a large-scale power grid under previous phases of the Green Energy Corridor program. Phase I involved about 9,100 kilometers of transmission lines, while Phase II is adding about 7,900 kilometers across seven states. As transmission investment expands under Phase III, demand is also expected to rise for power equipment from HD Hyundai Electric, LS ELECTRIC and Hyosung Heavy Industries, alongside BESS.

Power & SitesAsia-Pacific

LS Eco Energy to Expand Busduct Production in Vietnam

Credited to TheElec · thelec.netJust now

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LS Eco Energy will expand supplies of busducts for artificial intelligence (AI) data centers.

LS Eco Energy stated on October 7 that its Ho Chi Minh City-based Vietnamese production subsidiary, LSCV, will increase production of epoxy-insulated busducts. It has invested 8 billion won to establish a separate production line. Mass production is scheduled to begin in the second half of 2027.

Busducts are modular electrical wiring systems used to transmit large amounts of power. LSCV will add epoxy-type products to its existing film-type busducts, doubling its busduct supply capacity.

Epoxy-type busducts are relatively more resistant to changes in external conditions such as moisture and dust than film-type products, while also offering higher production efficiency. They are mainly used in power infrastructure requiring high reliability, including large-capacity power facilities, AI data centers, and plants. Global big tech companies are among the major customers.

Southeast Asia has recently seen active investment by global big tech companies in AI cloud infrastructure. Microsoft and TikTok announced investments of $2.2 billion in Malaysia and $3.8 billion in Thailand, respectively, in 2024. AWS is investing $17.5 billion in Singapore from 2024 through 2028.

LSCV established busduct production facilities in 2018. It expanded its business around plants and high-rise buildings. Its supply network was expanded to Indonesia last year and to Malaysia in March this year.

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Capital · Middle East & Africa

OpenAI in Talks With UAE Funds, BlackRock for $30 Billion Funding Round

Credited to TheElec · thelec.net · 2h ago

OpenAI is pursuing a major fundraising effort targeting sovereign wealth funds in the United Arab Emirates (UAE) and the world’s largest asset manager, BlackRock, as it pushes back its initial public offering (IPO) to next year. The company appears to be turning to the Middle East’s deep pool of oil wealth to cover massive infrastructure and technology development costs.

On Oct. 6 local time, Bloomberg reported, citing people familiar with the matter, that OpenAI is in talks with several major UAE investment funds, including Abu Dhabi-based technology investment firm MGX, to raise a total of $30 billion in a new funding round. MGX has previously participated in funding rounds for OpenAI and Anthropic. According to THE ELEC, MGX raised about $50 billion earlier this year to accelerate investment in AI infrastructure and core technologies.

OpenAI is valuing itself at about $1.4 trillion and is seeking to raise at least $30 billion. The company’s most recent funding round was in March, when it raised $122 billion at a valuation of $852 billion.

The UAE funds are discussing forming a consortium to participate in the funding round and are considering contributing as much as $10 billion of the total investment, according to people familiar with the matter. BlackRock is also in talks to join the funding round alongside the consortium. OpenAI, BlackRock, and MGX did not respond to requests for comment.

Altman has said that taking OpenAI public would expose the company to short-term stock-market valuations and could influence decisions on AI safety, calling an IPO in 2026 premature as the company focuses on technology development and responding to government regulation.

Boomberg reported that the latest funding round differs from the typical venture-capital funding process. Normally, a selected lead investor presents a valuation and proposes specific investment terms before negotiating with the company. OpenAI, however, is leveraging its dominant market position to set its pre-money valuation at $1.4 trillion and present that figure to potential investors as a fixed price.

Meanwhile, ChatGPT is currently running advertising services in more than 60 markets worldwide, with annual recurring revenue (ARR) from the business reportedly exceeding $1 billion.

​LS Eco Energy to Expand Busduct Production in Vietnam

LS Eco Energy to Expand Busduct Production in Vietnam