Elon Musk's Tesla proposes setting up battery storage factory in India: Report

Tesla is reportedly drawing up plans to make and sell battery storage systems in the country. The company, helmed by Elon Musk, has reportedly submitted a proposal seeking incentives to build a factory. 

According to Reuters, Tesla proposed supporting India’s battery storage capabilities with its ‘Powerwall’ system that stores power from solar panels or grids for use at nights or during shortages. Tesla also sought a number of incentives to set up its battery storage factory but was told by the officials that these would not be available. As per the report, the Indian government, however, told the company that they would help create a fair business model by offering subsidies to those purchasing such products. 

The government is reportedly reviewing the proposal. 

Tesla has been in talks with the Indian government to set up a new electric vehicle factory in India to build a car priced around $24,000. The Powerwall proposal is part of the company’s plans for a broader presence in India, something beyond EVs. 

India’s electricity supply is largely dependent on coal-based power generation. However, India is looking to move to non-fossil fuel power and is targeting increasing the capacity to 500 GW by 2030. 

Aimed at domestic and light commercial use, Powerwall is a meter-high unit that can be hung in a garage or outside a house. Tesla could develop larger solutions for the Indian industry if the plan sees fruition. 

Powerwall costs more than $5,500 (over Rs 45,000) in California, with additional costs for solar panels. Indian officials reportedly told Tesla that they will have to work on reducing the cost of its battery storage products.

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