Enchem Opens the Door to India's Two-Wheeler Battery Market
Enchem, a secondary battery electrolyte company, announced on December 2 that it has been selected as the final electrolyte supplier by the largest battery manufacturer in the electric two-wheeler sector in India, the world's largest two-wheeler market. The initial supply volume will be produced and delivered from Enchem's Cheonan plant in Chungnam, South Korea. The company plans to flexibly link its global supply chain to meet the growing local demand in India. Through this contract, Enchem aims to increase the operating rate of its existing global production bases and strengthen its profit-focused management system.
The customer receiving the electrolyte supply is a top-tier two-wheeler manufacturer based in southern India, currently possessing a battery cell production capacity of approximately 5 gigawatt-hours (GWh), with plans for a large-scale expansion to 20 GWh by 2030. This company has rapidly grown with a product lineup centered on electric scooters and plans to expand its business into new markets expected to see electrification, such as drones and energy storage systems (ESS), in the mid- to long-term.
Although internal combustion engine motorcycles still dominate in India, the pace of transition to electric two-wheelers is accelerating rapidly due to recent government electrification policies and increased manufacturing incentives. According to the Society of Indian Automobile Manufacturers, motorcycle sales in India reached 19.61 million units last year, up 9% from the previous year.
With this supply agreement, Enchem plans to expand India and Southeast Asia as future key demand markets, initially focusing on supplying electrolytes for electric two-wheelers and later exploring opportunities to enter new applications such as ESS. By securing a local customer base in India, the company also expects to accelerate its global supply chain diversification strategy.
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