Amara Raja Joins The Rush To Set Up Lithium-Ion Battery Plants In India
Amara Raja has signed an agreement with Telangana government to set up a so-called Amara Raja Giga Corridor 100 km from Hyderabad.
Amara Raja Batteries Ltd. has signed an agreement with the Telangana government to set up a lithium-ion battery plant in the state, joining a clutch of companies seeking a first-mover advantage in electric mobility.
The so-called Amara Raja Giga Corridor, which will come up in the Mahbubnagar district—about 100 km from Hyderabad—will house a battery manufacturing facility as well as an innovation center. The company plans to invest more than Rs 9,500 crore over 10 years, subject to approvals.
“This latest step is in line with the ‘Energy & Mobility’ roadmap that we laid out last year,” Vikramadithya Gourineni, executive director-new energy business, at Amara Raja, said in a statement on Friday. “Our ambition is to develop a robust Indian ecosystem…a giga corridor for emerging technologies in energy and mobility.”
The entry of electric vehicles into the Indian automotive space has prompted the maker of Amaron lead-acid batteries to shift gears and move into manufacturing lithium-ion batteries for cars as well as two-wheelers.
On Nov. 3, the company announced the incorporation of Amara Raja Advanced Cell Technologies Pvt. to make lithium-ion cell chemistries for Indian conditions. It already supplies lithium battery packs and chargers to some two- and three-wheeler original equipment manufacturers in the country.
Joining The Bandwagon
Amara Raja isn’t the only company that sees an opportunity in manufacturing lithium-ion batteries in India.
Chennai-based Munoth Industries Ltd. is set to commission a lithium-ion cell manufacturing unit in Tirupati.
TDS Lithium-Ion Battery Gujarat Pvt., a joint venture of Toshiba Corp., Denso Corp., and Suzuki Motor Corp., is setting up a lithium-ion battery plant in Hansalpur, Gujarat.
Exide Industries Ltd. has identified an 80-acre land parcel in Bengaluru's Hi-Tech Defense & Aerospace Park for a turnkey plant.
Amperex Technology Ltd., a leading producer of lithium-ion batteries, has acquired 180 acres near Gurugram for the development of manufacturing units.
Lucas TVS has partnered with 24M Technologies to make semi-solid lithium-ion batteries in Thervoy Kandigai, Gummidipoondi, near Chennai.
Mumbai-based Epsilon Carbon Pvt. had started production of graphite anodes for lithium-ion batteries.
In May 2021, the central government approved a production-linked incentive scheme for the manufacturing of advanced chemistry cells in India, in a push for electric mobility in India.
Since then, at least four companies—Reliance New Energy Solar Ltd., Ola Electric, Hyundai Global Motors Pvt., and Rajesh Exports Ltd.—have been selected for the PLI scheme.
On Friday, shares of Amara Raja rose 1.18% to Rs 653.35 apiece on the BSE, even as the benchmark Sensex ended the day 0.66% lower at 62,868.50 points.