Log9 Materials, an Indian producer of lithium-ion batteries, has announced that their Bengaluru production might be affected due to the postponed arrival of Chinese specialists. This delay stems from the Indian government’s protracted visa approval process. The company relies on these Chinese engineers for machinery installation and upgrades at their plant, so any holdup in their visas could affect production.
Log9 Materials hailed as India’s first lithium-ion battery manufacturer, has notified about potential disruptions in its production in Bengaluru. This comes after delayed visa application approvals for Chinese experts by the New Delhi government.
The timely arrival of these Chinese engineers is essential for Log9. “If the Chinese engineers don’t arrive on time, our cell line production will be impacted. We can’t ascertain the extent yet, but it has the potential to affect the production seriously,” said Pankaj Sharma, the co-founder and director of Log9, in a statement to Reuters.
These engineers play a crucial role in installing and upgrading imported machinery at Log9’s facility. Sharma further pointed out that a visa issuance delay of roughly four months could significantly hinder the factory’s ability to achieve maximum production rates.
Interestingly, Log9’s predicament resonates with other manufacturers. Earlier this month, an Indian government official noted that several manufacturers dependent on Chinese expertise had requested expedited visa approvals for their Chinese vendors. Such concerns surface as India tries to establish itself as a prime manufacturing destination for corporations diversifying from China, currently navigating a period of sluggish economic growth.
Log9’s Bengaluru-based plant, presently its sole manufacturing facility, claims an annual capacity of 250 MWh in battery production. The firm’s batteries power the electric fleets of logistic companies like Maersk and Blue Dart Express, along with EV producers such as Quantum Energy and Hala Mobility.
Log9 has reported sales of over 1,000 battery units in 2023, following the 4,000 units sold last year. Financially, Log9, backed by Amara Raja Batteries and Malaysia’s Petronas, secured USD 40 million earlier in January at a roughly USD 10 million valuation. Sharma confirmed that the enterprise will launch its subsequent funding round by this year’s end or early next year.