Tesla Group has entered into a strategic $1 billion partnership with UK-based SRAM & MRAM Group to establish large-scale electric vehicle (EV) battery production plants in India and several other countries. The agreement marks a major expansion of Tesla’s battery manufacturing footprint into emerging global markets.

As part of the deal, SRAM & MRAM Group will focus on securing single-window clearances, regulatory approvals, subsidies, tax incentives, and local collaborations. Tesla Group will assume responsibility for the engineering, design, and construction aspects of the gigafactories. This division of roles ensures compliance in host nations while leveraging Tesla’s technological and infrastructure expertise.

The plan outlines the establishment of five giga-factories across India, each spanning nearly 500 acres. In addition, another 15 facilities are proposed worldwide in Malaysia, the United States, Oman, the UAE, Cambodia, and Brazil. The gigafactories are designed to be end-to-end hubs for EV battery manufacturing and energy storage, positioning them as critical nodes in the global transition to clean mobility.

SRAM & MRAM chairman Sailesh Hiranandani described the initiative as a transformative move to bolster India’s energy and EV ecosystem. He underscored India’s potential as a major battery hub given its rapid EV adoption trajectory and favourable government initiatives on clean mobility.

Tesla Group president Nanda Bhagi emphasized that the partnership is deeper than industrial expansion. He noted that by combining Tesla’s advanced battery energy storage systems (BESS) with SRAM’s cross-border operational reach, the collaboration aims to build sustainable ecosystems and communities anchored in renewable energy.

The large-scale battery push comes amid growing competition in Asia’s EV ecosystem. Last month, Vietnam-based VinFast Auto inaugurated an EV assembly plant in Tamil Nadu’s SIPCOT Industrial Park, its third global production site.

Meanwhile, Chinese giant CATL began constructing a $1.2 billion EV battery plant in Indonesia this June through a joint venture with Indonesia Battery Corporation.

Tesla and SRAM & MRAM’s India-focused manufacturing drive aligns with the nation’s ambition to become a global EV hub. With giga-factories sized to handle not only domestic demand but also exports, the project underscores India’s rising role in global EV supply chain realignment.

Agencies