Amara Raja’s fully owned division, Amara Raja Advanced Cell Technologies Private Limited (ARACT), is set to partner with Ather in the development and provision of NMC (Nickel Manganese Cobalt) and LFP (Lithium Iron Phosphate) lithium-ion cells. These cells will be manufactured at Amara Raja’s new Gigafactory located in Divitipally.
In a significant development highlighting India’s commitment to electric mobility, Amara Raja Energy & Mobility Limited (ARE&M), a top battery manufacturer in India, has entered into a strategic partnership with leading electric two-wheeler company Ather Energy. This collaboration, sealed through a Memorandum of Understanding, will have Amara Raja develop and supply advanced lithium-ion cells for Ather’s electric scooters.
This alliance represents a pivotal move for Amara Raja as it aims to expand its product range and reduce reliance on traditional lead-acid battery technology. Historically known for its automotive and industrial lead-acid batteries, the company is now making bold strides into the growing lithium-ion and electric vehicle (EV) battery markets. This transition is timely as India’s automotive sector rapidly pivots to electrification.
As part of the agreement, Amara Raja’s wholly-owned subsidiary, Amara Raja Advanced Cell Technologies Private Limited (ARACT), will work with Ather to develop and provide NMC (Nickel Manganese Cobalt) and LFP (Lithium Iron Phosphate) lithium-ion cells. These cells will be manufactured at Amara Raja’s forthcoming Gigafactory in Divitipally, Telangana, where the company plans to invest Rs 9,500 crores to create a 16GWh capacity facility.
Ather Energy, a significant figure in India’s electric two-wheeler sector, continues to expand its production footprint with existing facilities in Hosur, Tamil Nadu, and an upcoming site in Maharashtra. Based in Bengaluru, this high-performance electric scooter startup is poised to enter the public market next year, buoyed by the increasing demand for electric vehicles in India.
This partnership gains importance against the backdrop of India’s EV industry, which currently depends significantly on battery imports, mainly from China. Through local production of lithium-ion cells, Amara Raja and Ather intend to diminish import reliance and bolster India’s stature in the global EV supply chain.
Vikramaditya Gourineni, Executive Director of Amara Raja Energy & Mobility Ltd, discussed the company’s advancements in establishing premier cell and battery pack manufacturing facilities. He noted that their recent collaboration with Gotion-InoBat would boost these efforts. He expressed pride in partnering with Ather to develop market-relevant solutions that support the domestication of Electric Vehicle technologies in India.
Tarun Mehta, Co-founder & CEO of Ather Energy, emphasized the significance of this partnership in fostering indigenous cell technology. He mentioned that this collaboration would allow them to optimize costs and obtain lithium-ion cells specifically suited to Ather’s needs, thereby enhancing their innovation and scaling capabilities.
Industry forecasts indicate that electric two-wheeler adoption in India might reach 40% by 2030. This partnership between Amara Raja and Ather Energy sets both entities to leverage this growing market while aiding India’s ambitions to lower carbon emissions and achieve energy independence in the automotive sector.
