- Amara Raja aims to triple their lithium-ion business
- They are devising all these plans under the umbrella of ‘New Energy’
Amara Raja Batteries, renowned for its Amaron batteries, is gearing up to enter the two-wheeler electric vehicle (EV) market. They envision becoming a major player in the rapidly expanding two-wheeler EV market. Their goal is to triple the size of their lithium-ion business this year. They plan to achieve this by initially introducing chargers and subsequently launching new battery packs for EV two-wheelers. This initiative is a key component of their strategy within the ‘new energy’ sector.
Currently, Amara Raja caters to customers in the three-wheeler EV market, generating approximately 2.5% of their revenue from the sale of lithium-ion batteries. The remaining portion of their total revenue, which amounts to approximately Rs 103.85 crore ($1.25 billion) in the year 2023, stems from their core business of manufacturing lead-acid storage batteries.
They’re preparing to launch new lithium cell and battery pack factories. This move will significantly boost their battery manufacturing capacity, particularly in response to the growing demand from the telecom sector. They are actively working on localization to ensure they have all the necessary elements required for battery production. Additionally, they are in contact with global companies for ‘technology transfer’ pertaining to the production of Lithium-Ion batteries.
The company serves clients in the automotive, telecom, and uninterrupted power supply (UPS) fields.
Their lead acid battery division is all set to grow in the Western markets. The company is having discussions with eight major distributors in North America for a smart partnership to supply batteries. According to Executive Director Harshavardhana Gourineni, these distributors have their own brands, and the plan is to provide them with company’s products. Some of these exciting partnerships might even come to life in this current financial year.
(This article is assisted by Chat GPT)
