Industry experts believe Karnataka is well on its way to becoming a battery manufacturing hub, with at least four major lithium-ion battery and cell manufacturing units proposed in and around Bengaluru in the last year. This month, the US-based IBC signed an agreement with the state government to establish a recyclable lithium-ion battery manufacturing unit. The company intends to invest Rs 8,000 crore in the project, which will be built on a 100-acre plot in Bengaluru Rural district, according to Industries Minister MB Patil.

Another major player in the sector, Exide, has proposed its first multi-gigawatt hour lithium-ion cell manufacturing facility at the Hi-Tech Defence and Aerospace Park in Bengaluru, with Rs 6,000 crore in investments. The company announced this month that it received very lucrative incentives from the state, ranging between 18-20% of capital expenditure. Lithium-ion cell manufacturer NSure Reliable Power Solutions is planning a giga-factory near Bengaluru, with an investment of Rs 1,050 crore. The company announced that it would start operations by October.

Log9 Materials, a battery technology startup, opened India's first commercial cell manufacturing unit in Jakkur, Bengaluru, in April. Cofounder Pankaj Sharma stated that the state government could improve business conditions. "The production of lithium cells requires a lot of energy." "We need a consistent, steady, low-cost, and preferably green source of energy," he said.