Amara Raja Energy & Mobility Ltd, is ramping up its investment in lithium-ion cell production.
The company will commit an additional Rs 1,200 crore by fiscal year 2027 to complete its first 1 GWh gigafactory in Telangana, bringing the total investment for the project to ₹2,400 crore.
This new funding will be used to finalize the construction of its research lab, customer qualification plant, and the 1 GWh gigafactory itself. The company has already deployed ₹1,200 crore into its New Energy subsidiary. Amara Raja’s long-term plan is to scale its total cell manufacturing capacity to 16 GWh by 2030, targeting both the electric vehicle and stationary energy storage markets.
The Telangana facility will initially produce Nickel-Manganese-Cobalt (NMC) cylindrical cells in the 21700 format, primarily for two-wheeler applications.
The company expects its research lab and customer qualification plant to be operational by the end of this year, with the gigafactory’s main building now under construction. While the initial focus is on NMC cells, future expansion could include Lithium Iron Phosphate (LFP) cylindrical cells.
Amara Raja has partnered with China-based Gotion-InoBat-Batteries for its LFP technology and has already signed supply agreements with major OEMs like Ather Energy and Piaggio India.
This move places Amara Raja in direct competition with rivals like Exide Industries, which is preparing to begin trial runs at its own Bengaluru-based lithium-ion cell plant, and Ola Electric, which has recently scaled back its own manufacturing ambitions, citing slower EV market growth.
In addition to its new energy initiatives, Amara Raja Energy & Mobility continues to be a leader in traditional energy storage. The company produces its Amaron and Powerzone automotive batteries and PowerStack, AmaronVolt, and Quanta industrial brands, serving major clients across the telecom, railway, and power sectors. Its products are also exported to over 50 countries globally.
