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“Log9’s EV Cell Production Slows Down Due to Visa Delays for Chinese Experts”

“Log9’s EV Cell Production Slows Down Due to Visa Delays for Chinese Experts”

August 28, BENGALURU: Log9 Materials, a pioneering name in India’s lithium-ion battery manufacturing sector, has issued a cautionary note regarding potential disruptions in production at its Bengaluru facility. The cause for concern stems from the delay in the arrival of Chinese technical experts, a delay attributed to the New Delhi government’s prolonged visa approval process.

Pankaj Sharma, Co-founder and Director of Log9 expressed his apprehension about the situation. He explained, “If the Chinese engineers don’t arrive on time, then our cell line production will get impacted. We don’t know by how much, but it can practically destabilize the production.” This development raises significant concerns for Log9, as their production processes heavily rely on the expertise of Chinese engineers to set up and optimize machinery within their facility.

The presence of these Chinese engineers plays a pivotal role in enhancing the production capabilities of Log9’s factory. Any delay in their arrival, extending up to around four months due to visa issuance, could significantly impede the facility’s journey towards achieving peak production capacity. This comes at a time when several Indian manufacturers that depend on Chinese expertise are urging for expedited visa approvals for their vendor partners from China.

This scenario unfolds against the backdrop of India’s ambitious endeavor to establish itself as a prominent global manufacturing hub. The country aims to attract companies seeking to diversify away from China, which has been grappling with a slowdown in economic growth. The delays in visa approvals for crucial technical personnel could potentially hinder India’s aspirations of becoming a preferred destination for manufacturing operations.

At present, Log9’s Bengaluru factory stands as its sole manufacturing unit, boasting an impressive annual installed capacity of 250 MWh for battery production. These batteries hold strategic significance as they power the electric fleets of major logistics players like Maersk and Blue Dart Express, along with electric vehicle manufacturers such as Quantum Energy and Hala Mobility. This aligns well with the Indian government’s push towards adopting cleaner and more sustainable technologies across industries.

Notably, Log9 has already achieved substantial sales milestones in 2023, with over 1,000 battery units sold so far. This comes on the heels of the company’s achievement of 4,000 unit sales in the previous year. While Pankaj Sharma refrained from disclosing specific production figures, it’s evident that Log9’s market presence is on an upward trajectory.

Backed by notable investors such as Amara Raja Batteries and Malaysia’s Petronas, Log9 garnered $40 million in funding in January, valuing the company at approximately $210 million. Looking ahead, Sharma revealed that Log9 is gearing up for its next funding round, anticipated to commence by the end of this year or early next year. This funding round is poised to further support the company’s growth ambitions.

the delay in visa approvals for Chinese technical experts has cast a shadow of uncertainty over Log9 Materials’ production capabilities. The situation not only highlights the critical role of international collaboration in the manufacturing sector but also underscores the challenges that emerging manufacturing hubs like India might face in attracting foreign expertise.


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