Amara Raja Group’s Strategic Expansion in the EV Battery Market
Amara Raja Group, a prominent player in the battery manufacturing sector, has commenced the construction of its Customer Qualification Plant (CQP) for EV cell manufacturing. This initiative positions the company alongside industry leaders like Ola and Exide in the race to establish India’s first gigafactory. Additionally, the company is planning to launch a 6 million units per annum lead acid battery plant in North India, as part of its strategy to diversify and strengthen its presence in the northern and western markets. This was announced by Amara Raja Group chairman, Jayadev Galla, during the inauguration of their 1.5GWh Lithium-ion battery pack plant.
Commercial Pilot Plant to Fuel Future Growth
The newly initiated CQP is a commercial pilot facility designed to produce cells for customer testing and validation. The plant is slated for completion by March 2025, with initial cell production anticipated between April and June 2025. The company projects the commercial launch of the first phase of its GWh operations by Q4 of 2026, with plans to expand the facility’s capacity to 16GWh by FY2029. This significant project is being spearheaded by Amara Raja Advanced Cell Technologies (ARACT), a subsidiary of Amara Raja Energy & Mobility Limited (ARE&M).
Collaborations and Future Developments
Amara Raja has already secured MoUs with Piaggio Vehicles Private Limited and Ather Energy for the development and supply of advanced Li-ion cells, chargers, and battery packs for their upcoming EV offerings. In line with its expansion goals, the company also announced in December 2022 its plans to establish a 5GWh Li-ion battery pack assembly plant alongside a 16GWh cell manufacturing facility, with ambitions to expand the gigafactory’s capacity to 30GWh. The facility, located on a 260-acre site, is expected to create over 4,500 direct jobs, in addition to numerous indirect employment opportunities. Additionally, ARE&M is developing the ePositive Energy Labs, an advanced energy research and innovation center, near the Hyderabad international airport.
