Amid US-China trade tensions and rising tariffs, India-made lithium-ion cells are set to go global, as US’s Anker has signed a deal with Munouth Group to source cells for power banks.
Anker, a US-based power bank maker, has reportedly signed an agreement with the Munouth Group in Chennai to source lithium-ion cells from India, benefiting from the ongoing US-China trade tensions.
According to the Economic Times, as part of a six-month deal, Munouth’s 270 MWh facility in Andhra Pradesh will begin exporting one million lithium-ion cells per month to Anker, with production set to start in the second quarter of 2025.
With this success, Munouth plans to expand its production capacity five-fold to meet the growing demand, from 500,000 to 2 million cells per month.
This collaboration comes as the US imposed a 25% tariff on lithium-ion cells imported from China for consumer electronics starting in 2026. This move is seen as a boost to India’s emerging battery manufacturing sector, which is looking to reduce its reliance on Chinese suppliers.
Jaswant Munouth, Vice Chairman of Munouth Industries, stated that the deal is an opportunity to build confidence in local battery production, with expectations that it will encourage Indian brands to source lithium-ion cells domestically.
According to ET‘s report, the deal highlights the shift in global supply chains driven by the trade dispute. Many companies are seeking alternatives to Chinese suppliers due to rising tariffs. India is one of those alternatives.
With the domestic industry gearing up to reduce import costs, the Indian government is expected to announce financial support for the electronics sector, which could further strengthen the industry.
A report by the India Cellular and Electronics Association (ICEA) indicates that India imports around 1.5 million lithium-ion cells monthly for digital applications, driving the urgency of local production.
As the trade war continues, India’s electronics industry, including companies like Munouth and Exide, stands to gain, with the potential for further such deals as manufacturers from US shift focus from China.
