Cygni will Invest $40 million in its New Manufacturing Plant

Hyderabad-based Cygni Energy Private Limited, a Lithium-ion battery pack maker is looking to invest about $40 million to build up a greenfield manufacturing plant. This manufacturing plant will be installed in Hyderabad. This manufacturing plant will annually roll out 40,000 batteries. These batteries will be used in electric vehicles (EVs) and stationary applications like telecom towers. This new manufacturing plant will increase the capacity of the company by around four times. Chief executive officer (CEO) Venkat Rajaraman of the company further informed that the company is also planning to raise funds through a mix of debt and equity, with about $7-10 million coming from equity and the rest as debt. Currently, the annual capacity of Cygni is 250 megawatt-hour. So far, the company has old about 125 megawatt-hours of batteries. This is equivalent to about 60,000 EV batteries. Mr. Rajaraman further said: “India’s energy storage revolution is happening. The prediction is that we are going to need upwards of 50 gigawatt-hour of storage requirement in the next 5-7 years. So clearly what Cygni and others are setting up, it looks like we would still fall short of that.”