JLR Secures Major Battery Cell Deal with Agratas
Jaguar Land Rover (JLR) is set to significantly bolster its electric vehicle (EV) strategy by sourcing battery cells valued at over ₹5,000 crore from Agratas, the Tata group's dedicated battery manufacturing enterprise. This proposed transaction, detailed in Tata Motors Passenger Vehicles' Integrated Annual Report for FY2025-26, underscores JLR's commitment to its electrification roadmap.
The agreement outlines substantial procurement over the life of the partnership, with an initial transaction of up to ₹400 crore projected for the financial year 2027 (FY27). Shareholder approval has been sought for these material related-party transactions between the British luxury carmaker and Agratas Energy Storage Solutions Pvt Ltd and Agratas Ltd.
Agratas: Powering India and the UK's EV Future
Agratas, a strategic arm of the Tata group, is rapidly expanding its manufacturing footprint to meet the growing demand for EV batteries. The company is establishing two major battery cell manufacturing plants: one in Sanand, Gujarat, India, and another in the United Kingdom. These facilities are complemented by advanced research and development (R&D) centres located in Oxford, UK, and Bengaluru, India.
The Oxford R&D facility focuses on cutting-edge chemistry development and early-stage innovation, leveraging a robust academic and innovation network. Conversely, the Bengaluru centre is dedicated to industrial scaling, cost engineering, localisation efforts, and process development, ensuring readiness for mass production. This dual-pronged approach aims to translate fundamental research into scalable, reliable manufacturing.
Strategic Advantages and Manufacturing Challenges
Being an integral part of the Tata group provides Agratas with significant strategic advantages, including assured key customers from Tata's passenger and commercial vehicle businesses. This integrated ecosystem is expected to accelerate execution, enhance resilience, and foster a comprehensive mobility and energy solution.
Despite the strategic benefits, battery cell production presents formidable manufacturing challenges. Achieving consistent yield at scale is paramount, requiring extremely precise control over every step, from slurry preparation and coating to drying and final assembly. Minor deviations can lead to defects, safety concerns, and reduced yields. As CV Manohar, Head of Cell Research and Development at Agratas India, highlighted, the true test lies in producing battery cells repeatedly, reliably, and at high yield.
Localisation and Supply Chain Resilience
The success of battery manufacturing also hinges on high-purity raw materials and a deep understanding of cell chemistries. A critical challenge for India's battery sector is the current reliance on imports, with over 90% of upstream materials like Cathode Active Materials, Anode Materials, and electrolytes currently sourced from China. Agratas is focused on developing a domestic ecosystem for these critical components to strengthen supply chain resilience and long-term competitiveness.
It is noteworthy that Agratas did not participate in the Indian government's ₹18,100 crore production-linked incentive (PLI) scheme for Advanced Chemistry Cell Battery Storage. While some companies that qualified for the scheme, such as Reliance New Energy and Rajesh Exports, are yet to commence commercial production, Ola Cell Technologies, a subsidiary of Ola Electric, has already begun commercial operations with 2.5 GWh of capacity.