Waaree Energy has centered its battery manufacturing efforts as a key element of its energy transition strategy, with plans to implement a 20 GW battery cell and pack production facility in phases starting from FY27, according to Group Head of Finance Abhishek Pareek during a post-results discussion.
Pareek noted that Waaree’s entry into battery manufacturing is the result of focused efforts over recent years, as the company aims to broaden its role in the energy transition landscape rather than just concentrating on solar modules.
He mentioned that the company is pursuing both vertical and horizontal expansion, which includes backward integration, EPC capabilities, and new areas such as inverters, hydrogen, electrolysers, and batteries.
Battery storage is crucial to overcome the limitations of solar power, as 6-8 hours of generation is not enough to meet extensive, continuous power demands. Pareek indicated that delivering 24×7 electricity at competitive prices requires either hybrid solutions or constant power, both of which rely on battery integration.
Waaree has recently secured around ₹1,000 crore in equity funding from investors to advance its battery manufacturing ambitions, showcasing the company’s operational capabilities, according to Pareek. The planned battery project outlines a total capacity of 20 GW for cell and pack manufacturing, to be developed in two phases.
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The first phase, targeting a capacity of approximately 3.5 GW, is expected to begin production in FY27, while the second phase, approximately 16.5 GW, is scheduled for FY28. Pareek mentioned that the construction of the initial phase is progressing well, with the company already receiving orders and a promising pipeline from both domestic and international markets.
Oman polysilicon facility at advanced stage
Waaree Energies Limited announced that its polysilicon facility in Oman, supported by a committed investment, has reached an advanced development stage, with trial production set to start this quarter, as stated by Abhishek Pareek.
The facility is expected to have an installed capacity of about 100 KTPA of polysilicon, equivalent to nearly 40 GW of annual polysilicon production. Pareek noted that this capacity offers sufficient supply options for Waaree’s vertically and pseudo-vertically integrated operations.
He also highlighted that a portion of Waaree’s customer base is increasingly looking for non-Chinese polysilicon, and the Oman facility will cater to those needs by providing traceable polysilicon.
Capital expenditure and capacity roadmap
The finance chief indicated that Waaree has outlined a capital expenditure plan of around ₹25,000 crore to be invested over the next 24 months. This plan includes investments in backward integration into ingots and wafers, expanding solar cell capacity, battery manufacturing, inverter production, and renewable power infrastructure.
The plan aims for module capacity to reach roughly 28 GW from current levels, with solar cell capacity set at about 15.5 GW and battery capacity at 20 GW. Pareek mentioned that capacity increases typically align with customer orders, and additional expansion would necessitate internal approvals.
US tariff and labour code impact
Regarding the effects of US tariffs, Pareek pointed out that Waaree’s proactive move to establish manufacturing in the US has helped protect its order book and pipeline. The company has 1.6 GW of operational capacity in the US, along with 1 GW of acquired manufacturing assets and another 1.6 GW in development, bringing the total planned capacity in the US to about 4 GW, sufficient for the upcoming years.
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He mentioned that exports from India remain ongoing, with solar cells sourced from regions experiencing relatively lower tariffs of 15-20%. Due to recent changes in US trade regulations, Waaree has adapted parts of its supply chain from Southeast Asia to the Middle East and African nations, including Ethiopia.
Concerning labor codes, Pareek stated that the company has already incorporated the potential impact into its profit and loss statement, along with necessary provisions based on analyses and valuations.
Shares of Waaree Energies Ltd increased by 9.67% on Thursday, January 22, rising ₹233.80 to close at ₹2,652.80 on the NSE.
