Mahindra & Mahindra is Willing to Invest in an EV Battery Cell Manufacturer in Order to Secure Supplies: Anish Shah, CEO

Mahindra & Mahindra may consider investing in a battery-cell company to meet future electrification needs, according to its CEO, following the company's $9.1 billion valuation of its new electric vehicle (EV) unit.

Mahindra raised $250 million from British International Investment for the unit on Thursday and is considering a partnership with Volkswagen AG to source EV components such as batteries and motors.

While the Volkswagen deal would meet Mahindra's "short to medium term" battery needs, Mahindra CEO Anish Shah said the company was open to making an "investment with a global leader" in the battery-cell space if future supplies were needed.

"Our intent is not to get into (manufacturing) batteries," Shah said in an interview. "There are people who do it very well. We can partner with them; we could be a co-investor in some form. We don't need to own it and run it."

Mahindra intends to release five electric sport-utility vehicles (SUVs) in the coming years. These models are expected to account for up to 30% of total annual SUV sales, or approximately 200,000 units, by March 2027.

Growing EV demand and supply chain disruption around the world are pushing automakers to look for ways to gain greater control over supplies and costs. Some automakers are investing billions of dollars in mines and factories for motors and batteries, reversing years of reliance on suppliers.