EV start-up Matter signs MoU with Gujarat govt for Rs 1,500 crore

To roll out its first two-wheeler in H1 of 2022, inks MoU in electric mobility and energy storage solutions

On the back of a growing demand and a potential ramp up in its operations, Ahmedabad-based electric mobility and energy storage solutions start-up Matter is planning to roll out its first electric two-wheeler in first half of 2022.

"Looking at the current and growing demand in electric mobility as well as energy storage, Matter has decided to ramp up its manufacturing footprint from 60000 vehicles per annum in first phase to 200,000 in phase two. We have just finished setting up a 200 Mw plant for battery and will be going into production in January 2022. Similarly, we are looking at rolling out our first electric motorcycle by first half of 2022," Mohal Rajiv Lalbhai, founder and CEO of Matter told Business Standard.

As part of its production and roll-out plans, the company has signed a memorandum of understanding (MoU) with Government of Gujarat for investment commitments worth Rs 1500 crore. To be made over a period of five years, the investment commitment in the area of next generation electric mobility and energy storage solutions entails employment for over 4000 in the said period.

Elaborating on the investment, Lalbhai stated that of the Rs 1500 crore, Rs 1200 will be invested in electric mobility and Rs 300 crore will be invested in energy storage.

With the first phase of 60000 vehicles per annum under development, Matter will spend on building its research and development in core technology as well as infrastructure in and around Ahmedabad. Its division Matter Energy is already in process of developing battery back-up applications for home as well as industry, with a roadmap for larger systems by end of 2022.

"In battery, we are mostly into B2B products which will begin production in January 2022. In terms of non-captive consumption, 70 per cent of our energy storage solutions will be in stationary space and 30 per cent in non-compete automotive space. There is also a growing demand for three wheeler battery packs and inverter back-up batteries which could be looked at," Lalbhai added.

On the stationary side, Matter Energy is looking at 5 kilo-volts (kv), 7 kv and lesser applications, as well as larger applications like 40 kv and higher in line with industry requirements.

Having invested over $7 million so far, mostly bootstrapped, the additional investment commitment of Rs 1500 crore will continue till 2026, with a mix of debt and equity structuring.