Amara Raja Energy & Mobility Ltd (ARE&M), a prominent player in the lead-acid battery sector, is forging ahead with its own advanced battery technology development for the Indian market. This strategic shift comes after its proposed partnership with China's Gotion for battery cell technology stalled due to geopolitical considerations.
In-House Innovation and Investment
Vikramadithya Gourineni, Executive Director of New Energy Business at Amara Raja Energy & Mobility, confirmed the company's commitment to building technical know-how in-house. "Technology can be accelerated through partnerships, and technology can also be developed in-house. That unfortunately, has not moved ahead due to geopolitical reasons," Gourineni stated in an interview.
ARE&M has invested approximately $100 million into two key facilities: a dedicated research engineering centre and a qualification plant. This robust investment underpins their largely in-house efforts, leveraging a team primarily composed of Indian nationals with extensive experience in global battery companies.
Scaling Production for India's EV Market
The company is currently commissioning a 100 MWh qualification plant, a crucial step before its larger-scale production. Amara Raja's first 2 gigawatt-hour (GWh) battery cell gigafactory is anticipated to be operational by June 2027. The long-term vision includes expanding this capacity significantly, aiming for 16 GWh in phases by 2030-31, backed by a planned investment of Rs 9,500 crore.
Initially, Amara Raja will focus on producing NMC (nickel manganese cobalt) lithium-ion cells, specifically targeting India's rapidly expanding electric two-wheeler market. Gourineni also indicated plans to develop LFP (lithium iron phosphate) and other future chemistries, with product development efforts largely driven by local teams.
Navigating Challenges and Market Dynamics
Despite the ambitious plans, Amara Raja faces several hurdles. Dependence on foreign equipment suppliers, particularly from China, poses a challenge, exacerbated by difficulties in securing visas for international technicians required for installation and commissioning. "When that equipment is being imported, the technicians from those countries are required to come and help with installation process. It’s not only China, but our own government is also not willing to give visa to these people," Gourineni explained.
Another significant challenge lies in market acceptance and pricing. Selling domestically produced cells to Indian automakers may prove difficult if a premium is expected over globally competitive, often cheaper, "Made in China" options. "We do not have clarity on the type of pricing our customers are willing to pay," Gourineni admitted, acknowledging that "'Made in China' prices for battery cells are not realistic to expect on Day One."
In August 2024, Amara Raja Advanced Cell Technologies (ARACT), a wholly owned subsidiary, signed an agreement with Ather Energy to develop and supply NMC and LFP lithium-ion cells from its upcoming gigafactory in Divitipally, Telangana, signaling a commitment to local partnerships.