Foxconn, the Taiwanese electronics manufacturing giant, is making significant strides in its global expansion strategy with plans to establish a battery energy storage system (BESS) unit in India.
This move, as announced by Foxconn’s Chairman Young Liu, underscores the company’s growing focus on the electric vehicle (EV) sector.
Foxconn, best known for assembling Apple’s IPhone, has been diversifying its business in recent years. The company is strategically targeting three high-growth industries, electric vehicles, digital health, and robotics.
Collectively, these sectors are estimated to have a combined market potential of $1.4 trillion, with an impressive compound annual growth rate of over 20 percent. Foxconn’s “3+3 strategy” emphasizes these industries as key pillars of its future growth.
As a part of its expansion into the EV market, Foxconn has already set up its first battery energy storage system in Taiwan, focusing on supporting electric buses (e-Buses). BESS technology is crucial for storing energy from renewable sources like solar and wind, which can then be used to power electric vehicles or supply energy to the grid during peak demand times.
Chairman Liu, who is also Padma Bhushan awardee, expressed optimism about India’s potential during his current visit to the country. Liu mentioned that Foxconn has already invested $10 billion in India and has plans for further investments in the coming year. He met with several India chief ministers, discussing the potential for further collaboration. Liu emphasized that India is on the rise, nothing that the country’s favorable business environment and government support make it an attractive destination for large-scale investments in technology and manufacturing.
Foxconn’s plan to establish an electric vehicle unit in India aligns with the India government’s ambitious goals to become a global hub for electric vehicles and renewable energy. The proposed BESE unit is expected to contribute significantly to India’s energy storage capacity’s transition to a more sustainable energy system.
As Foxconn continues to invest in India, the country’s roe in the global supply chain for electric vehicles and battery technology is set to expand, further boosting its economic growth and sustainability efforts.