TDK plans 180-acre battery factory in India for iPhone

We know iPhone assembly is already taking place in India, not it seems iPhone component manufacturing is also proliferating there as Japan’s TDK plans to make batteries for Apple’s smartphones in India.

A 180-acre battery cell factory for iPhone

India’s Deputy Minister for Information Technology Rajeev Chandrasekhar confirmed the news in a Tweet (No One Really Calls it X), citing local reporting from Business Standard. Calling this a big win for India’s plan to shift the mobile manufacturing ecosystem to India, he wrote:

“TDK, a leading supplier of cells to Apple, is setting up a 180-acre facility in Manesar, Haryana to build cells for batteries which will be used in the #MadeInIndia iPhones. Several 1000 new jobs will be created and increase in domestic value addition.”

The report has no comment from TDK or its secretive client and explains the battery cells used in iPhones made in India are currently imported from outside the country, though Apple’s battery assembler, Sunwoda Electronics, is already active in India.

Will employ thousands of people

TDK will set up a factory in Haryana, India and is expected to enter production in up to 18-months. The facility will employ up to 25,000 direct hires, with on-site worker’s quarters, similar to the arrangements made in the supply chain in India. Those arrangements suggest some alteration in existing employment law in India.

It is interesting to learn that battery cells account for around 70% of the cost of the battery put inside the iPhone, and around 3% of the price of iPhones. It’s a big win for India as TDK controls an estimated 60% of the global market for Li-ion battery cells, Business Standard explains.

Apple’s India supply chain rapidly expands

The news follows various reports across the last year claiming Apple management is encouraging manufacturers in its iPhone supply chain to set up shop in India. In one August report, Apple allegedly told Indian government ministers that it wants to get more components made in India. And in July, Foxconn invested in its own component manufacturing hub.

Apple’s investments in manufacturing in India mean its key partners have already spent billions to put in place iPhone manufacturing lines. Estimates claim Apple hopes to see up to 15-25% of all iPhones sold worldwide made in India within the next 12 months, and that number is going to rise.

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