Amara Raja, Ather Plan Li-Ion Gigafactory At Telangana

Amara Raja, Ather Plan Setup Li-Ion Gigafactory At Telangana

Ather Energy has established two manufacturing facilities in Hosur, Tamil Nadu: one for battery production and another for vehicle assembly. Recently, the company announced plans to build a new plant in Maharashtra and has now decided to collaborate with Amara Raja Advanced Cell Technologies to set up a facility in Telangana. This new facility will be part of their upcoming Gigafactory in Divitipally, Telangana.

Amara Raja Advanced Cell Technologies, a subsidiary of Amara Raja Energy & Mobility Limited (ARE&M), is set to sign a Memorandum of Understanding (MoU) with Ather Energy. Under this agreement, Amara Raja will collaborate with Ather to develop and supply NMC (Nickel Manganese Cobalt) and LFP (Lithium Iron Phosphate) lithium-ion cells, produced locally at the Gigafactory in Divitipally, Telangana.

Additionally, Amara Raja has recently partnered with Gotion-InoBat-Batteries (GIB) to adapt its global LFP technology for Indian conditions. The company also has an agreement with Jiangsu Highstar Battery Manufacturing Co. for NMC technology. With India focusing on clean and green energy, the automotive industry is undergoing a significant shift towards electric vehicles (EVs), particularly in the two-wheeler segment. Industry projections suggest that EV penetration in the two-wheeler market will reach 40% by 2030.

Both Amara Raja and Ather are strategizing to tap into this growing market potential. Ather Energy’s current facilities in Hosur include a dedicated battery production plant and a vehicle assembly plant. The company has also recently announced a new plant in Maharashtra.

Amara Raja has committed an investment of Rs 9,500 crores to establish a 16 GWh capacity Gigafactory in Telangana. Additionally, the company plans to establish an advanced research and innovation center, ‘ePositive Energy Labs,’ in Hyderabad.

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For Ather Energy, the decision to manufacture batteries locally aligns with the broader effort to source locally as much as possible.   the firm has already built its own charging network for its customers, although that has been thrown open for other users as well now.

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