13, June, 2025, In a pivotal move set to reshape India's electric mobility landscape, Eastman Auto & Power Limited (EAPL) has signed a Memorandum of Understanding (MoU) with Vande Bharat E-Vehicles to supply lithium-ion batteries worth USD 5.8 million annually for electric three-wheelers. This collaboration marks a significant milestone in the nation's journey toward clean and affordable transportation, especially in the last-mile mobility segment that caters primarily to commercial drivers and fleet operators.

The agreement enables Eastman Auto & Power to provide advanced, high-performance lithium-ion battery packs for Vande Bharat’s fleet of electric rickshaws. These batteries are engineered to deliver enhanced durability, faster charging, and longer operating life. Such innovations are expected to significantly reduce operational costs and increase productivity for vehicle owners and operators. The partnership is not only a commercial engagement but also a strategic initiative aimed at fostering electric vehicle (EV) penetration in India’s urban and semi-urban transport ecosystem.

Eastman Auto & Power, a key player in India's energy storage and power solutions industry, sees this alliance as a critical step in expanding its influence in the electric three-wheeler market — a sector gaining immense traction due to its affordability and contribution to lowering urban emissions. This partnership aligns well with the Indian government’s ambitious targets for EV adoption, particularly under the FAME II scheme, which incentivizes electric mobility and infrastructure development. With a national goal of achieving 30% electrification of vehicles by 2030, this partnership plays a strategic role in contributing to that vision.

Beyond transportation, this initiative also resonates with broader shifts occurring in India’s energy landscape. In the financial year 2024–25, the nation’s electricity consumption surged to an unprecedented 1,694 billion units, fueled by rapid industrialization, urban expansion, and digital transformation. This represents robust demand growth across key sectors such as manufacturing, services, and residential usage. Additionally, the per capita electricity consumption reached a record high of 1,538 kilowatt-hours (kWh), rising from 1,395 kWh the previous fiscal year. These figures not only signal economic expansion but also the increasing dependence on a reliable and sustainable power supply.

India’s energy transition is further underscored by its growing reliance on clean energy sources. As of March 2025, 49.2% of the country’s total installed power generation capacity was derived from non-fossil fuel sources, including solar, wind, hydroelectric, and nuclear energy. This shift reflects the government’s commitment to decarbonization, reducing greenhouse gas emissions, and enhancing energy security. Simultaneously, India’s peak power demand hit a new high of 250 gigawatts (GW) during FY25, highlighting the urgent need for resilient grid infrastructure and efficient energy distribution systems.

This Eastman-Vande Bharat partnership reflects the confluence of multiple strategic priorities — energy sustainability, transport electrification, and economic empowerment. By enabling the deployment of reliable battery technologies in electric three-wheelers, both companies are actively supporting India’s climate goals, reducing fossil fuel dependence, and enhancing the livelihoods of thousands of e-rickshaw drivers. As electric mobility continues to accelerate, collaborations like this will play a foundational role in shaping a greener, cleaner, and more inclusive transportation future for India.