Certified for sustainably powering EVs to energy grids, Cygni Energy’s new BESS manufacturing site in Hyderabad blends large-scale production and local sourcing. But what is driving its broader ambition?
Cygni Energy inaugurated its 4.8 GWh Battery Energy Storage System (BESS) manufacturing facility in Maheshwaram, Telangana, on Wednesday. The facility, which has received LEED certification, is the first of its kind in India and has been established with an investment exceeding ₹1 billion under first phase. It will be expanded to 10.8 GWh through an additional ₹1.5 billion investment over the next two years.
“This Gigafactory positions us to lead in the energy storage sector,” said Venkat Rajaraman, CEO of Cygni Energy, at the launch event. Several dignitaries from the government and industry representatives were present, including Jayesh Ranjan, currently serving as the Special Chief Secretary, Industries & Commerce and Information Technology, Government of Telangana, Professor Ashok Jhunjhunwala, Professor Emeritus at the IIT Madras, and Srini Raju, the Founder and Chairman of the iLabs Group.
The factory spans 160,000 sq. ft (equivalent to 14,864 square metres). It is spread across five acres and is located within the Electronics Manufacturing Cluster at E-Mobility Valley. Its production lines are fully automated and equipped for lithium-ion battery assembly. The plant incorporates cell-to-pack capability and a manufacturing execution system (MES) for real-time monitoring.
“This is a completely automated line—from lithium cell to module to pack. It integrates advanced safety, thermal, and BMS (battery management system) engineering,” said Rajaraman.
The manufacturing line supports various configurations suited for both energy storage systems and electric mobility. Expansion in the second phase will increase capacity by an additional 6GWh.
One site, three markets: grids, industry, and mobility
The factory is configured to serve three primary sectors: grid-scale energy storage for independent power producers (IPPs), commercial and industrial (C&I) energy users, and electric vehicle (EV) original equipment manufacturers (OEMs).
“Our primary customers include IPPs executing solar-plus-storage projects, especially in Southern states. We also cater to C&I users working with system integrators. For EVs, we supply battery packs for two-wheelers, three-wheelers, and light commercial vehicles,” confirmed Rajaraman. Three production lines are currently operational—two for EV battery packs and one for stationary energy storage systems.
In terms of employment, the facility has created approximately 150 jobs in its first phase. The company expects total employment—direct and indirect—to exceed 1000 as the second phase is completed. Speaking about this, Rajaraman noted, “we are building local talent capacity to support advanced battery design, manufacturing, and analytics.”
Cygni’s total investment across both phases is projected at ₹2.5 billion. The expansion will include additional automation lines and container integration units.
India builds the battery—except the cell (for now)
According to Cygni, more than 80 subcomponents go into each battery module. Aside from the lithium-ion cells, most are now sourced domestically.
“Battery management systems, thermal interfaces, mechanical structures, and enclosures are all locally produced,” said Rajaraman. “The supply chain for these has matured considerably in the last five to six years.”
While lithium-ion cells continue to be imported, primarily from China, Korea, and Japan, Cygni expects this to shift in the medium term. “India’s PLI (Production-Linked Incentive) scheme targets 50 GWh of cell manufacturing in the next 18–24 months. Once those units are operational, we aim to integrate them into our supply chain,” added the CEO.
The first LEED-certified battery manufacturing facility in India
The factory meets globally recognised sustainability benchmarks under the LEED (Leadership in Energy and Environmental Design) framework, making it India’s first to be certified. The site incorporates SRI (solar reflective index) paints and pavers, which reduce heat ingress through roofs and mitigate the urban heat island effect across walkways.
Energy efficiency is further enhanced through solar PV installations, reducing reliance on conventional power sources.
Water conservation is a key aspect, and the factory uses rainwater harvesting systems, STP (sewage treatment plant) facilities for wastewater reuse. It also supports drip and sprinkler irrigation to minimise consumption. In addition, low-flow plumbing fixtures have been used to ensure water efficiency throughout the facility.
Furthermore, EV charging infrastructure has been installed for both two-wheelers and four-wheelers. Energy and water meters have also been deployed across the plant to monitor resource use and drive optimisation.
“We embedded sustainability into the design from the very beginning,” said Venkat Rajaraman. “From biodegradable construction materials to EV testing stations, every element contributes to reducing our environmental impact.”
The facility also used green-certified paints, sealants, and construction materials, aligning with its broader commitment to environmental responsibility. These features were ultimately key in securing the plant’s LEED qualification.
From lab to load
Cygni maintains a research partnership with the IIT Madras, where it was originally incubated. The company also collaborates with the Centre for Battery Engineering and Electric Vehicles for cell qualification, pack-level design, and algorithm development.
“We have dedicated teams working on battery analytics, safety, and BMS software,” said the CEO. The factory’s BESS line produces liquid-cooled modules rated at 105kWh using 314Ah cells. These modules are standard units for containerised energy storage deployments.
“Our MES software allows full production traceability and operational efficiency,” he said. “These systems are configured for Indian grid requirements and are modular in design.”
To date, Cygni has delivered approximately 500 MWh of batteries to the power and energy market. The current order pipeline exceeds 1 GWh across BESS and mobility applications.
The company is also involved in next-generation battery chemistries such as sodium-ion.
“Sodium-ion batteries have lower critical mineral requirements and could bring raw material costs down significantly,” Rajaraman said. “While lithium-ion remains commercially dominant, we are investing in alternatives to diversify future options.”
Cygni is also working with HiNa Battery, a leading global sodium-ion battery technology provider. It has formed alliances with integrators like XLE and Kumar ENOVATE for BESS deployments. The firm has partnered with recycling firm Recykal by Attero to manage end-of-life battery processes.
Powering forward: growth, demand, and the next step
Founded in 2014, Cygni began commercial production by 2016 and quickly gained traction in India’s emerging energy sector. By 2020, it had delivered 125 MWh in stationary storage and reached 50,000 installations nationwide. Its EV battery business grew sharply after that milestone, with more than 125,000 vehicles now powered by Cygni systems.
The company raised $6.5 million in funding in 2018, followed by $12.5 million in 2022. Its ownership is currently split between institutional investors (60 per cent), founder Venkat Rajaraman (25 per cent), and IIT Madras and its affiliates (15 per cent).
In the previous financial year, EV batteries contributed around half of total revenue, but the growing share of BESS orders is expected to shift that balance. “The share from energy storage will rise this year as we expand our BESS operations,” Rajaraman said.
India’s energy storage demand is forecast to exceed 235 GWh by 2030, driven by renewable energy expansion and climate commitments such as COP26. Cygni’s portfolio—ranging from containerised storage units for grid applications to modular commercial systems and swappable EV batteries—is well-positioned to serve this fast-evolving market.
“Storage will be essential for integrating intermittent renewables into the grid,” Rajaraman noted, highlighting active tender activity across Tamil Nadu, Andhra Pradesh, Karnataka, and Kerala.
Looking ahead, Cygni plans to focus on deeper localisation, smarter software systems, and global market opportunities as it scales its gigafactory to 10.8 GWh. “India is at an inflection point in energy storage,” Rajaraman concluded. “This factory gives us the platform to respond with flexibility and scale.”
