Tata Motors held an investor day on Wednesday where it listed out its EV ambitions within the segment as well as for EV batteries. The company mentioned that Agartas Energy Solutions, a Tata Group subsidiary is capable of delivering batteries for a wide range of vehicles and it aims to be at the forefront of the global battery manufacturing industry.

The passenger and commercial vehicle manufacturer also said that it plans on establishing a cathode active material facility, adjacent to its gigafactory in Gujarat, to ensure uninterrupted supply of key materials. Tata Motors is looking to increase localisation of its electric vehicles to 85 percent by 2025. This will help the leading carmaker to reduce 15 percent of its component costs in the EV segment.

While its UK-unit Jaguar Land Rover (JLR) requires more than 40KGWh, Tata Motors needs more than 20GWh of cell capacity. Tata Motors is also working on solid-state sodium batteries for the EV bus segment in the medium-term.

On the operational front, the company also mentioned that it is targeting to reach double-digit EBITDA margin in the medium-term.

Last week, conglomerate Tata Group announced its plans to establish a lithium-ion cell manufacturing giga factory in Gujarat.

The subsidiary, Agratas Energy Storage Solution, signed a Memorandum of Understanding (MoU) with the Government of Gujarat to solidify this commitment on June 2. The project will entail an initial investment of Rs 13,000 crore in its first phase.

Brokerage firm Goldman Sachs has maintained its buy rating on the stock with a price target of Rs 600. It said that the quantum of the PLI scheme will act as a tailwind towards EV profitability.

Nomura believes that Tata Motors has the levers in place to gain further market share. It further said that the market share gains will be aided by new launches like Curvv, Sierra, Avinya, along with an expansion in the network.

Shares of Tata Motors hit a 52-week high of Rs 576.55 in intraday trading before cooling off. The stock is currently 0.7 percent down at Rs 563.85.