International Battery Company’s (IBC) Indian arm has signed a memorandum of understanding with the Karnataka Government of India to build an advanced battery manufacturing facility.

As part of the agreement, IBC Ventures has revealed plans to invest Rs80bn in the project.

In a Twitter post, Commerce & Industries and Infrastructure Minister MB Patil said that the new battery facility will be built on 100 acres of land near the state capital Bengaluru.

Patil was quoted by The Hindu as saying: “After the realisation of the project, the state would have its second lithium-ion [Li-ion] battery manufacturing facility paving the way for becoming the frontrunner as a Li-ion battery manufacturing state in the country.”

The minister said that the facility is expected to revolutionise the energy storage landscape in the country.

Privately-owned IBC intends to produce Li-ion cells at the proposed facility, reported Bloomberg News.

Karnataka Industries and Commerce department commissioner Gunjan Krishna told Bloomberg News: “IBC plans to begin production by 2025. They will be eligible for financial incentives after they start production.”

IBC reportedly also plans to manufacture lithium nickel manganese cobalt prismatic cells at the non-captive gigafactory.

In June this year, IBC India president Venkatesh Valluri said that the proposed facility would help cater to the country’s projected demand for lithium cell batteries of approximately 150GW by 2030.

The business is also developing a pilot plant in South Korea, which is nearing completion.