Amara Raja Increases Planned Capacity of its Telangana Gigafactory
Amara Raja Energy & Mobility Ltd., a major Indian manufacturer of batteries, is looking forward to increasing its planned production target by over 50% at its under-development Telangana gigafactory.
Telangana Gigafactory to have over 25 GWh Production Capacity
Several media reports from 3rd July 2024 quoted Mr. Niranjan C, Amara Raja Batteries’ Chief Operating Officer, as: “We recently announced about 16 GWh capacity [at the Telangana gigafactory]. But now we are recalibrating that and we are talking about it being be more than 25 GWh”.
In May 2024, the foundation stone was laid for the company’s Rs. 9,500 crore gigafactory in Telangana’s Mahbubnagar, and an annual production capacity of 16 GWh of cells and 5 GWh of battery packs at this facility had been envisaged at the time.
First Phase to be Commissioned in FY-26
The company expects to commission the first phase of this gigafactory with 2 GWh cell production capacity at this gigafactory in FY-26. This information was shared by the company’s management during its earnings call for its FY-24 financial results. Phase 1 of Amara Raja’s gigafactory includes an R&D centre, a pack assembly centre, and a cell production line.
Disclosure Comes Days After Agreement with GIB EnergyX
Amara Raja Energy & Mobility Ltd. had mentioned in its stock filing dated 24th June 2024, that it’s subsidiary, Amara Raja Advanced Cell Technologies Pvt. Ltd. (ARACT), has signed a technical licensing agreement with GIB EnergyX Slovakia s.r.o. GIB EnergyX is a subsidiary of China-based Motion High-Tech Co Ltd. This agreement entails licensing of GIB EnergyX’s Lithium Iron Phosphate (LFP) battery technology to ARACT.
Agreement to Enable Production of LFP Cylindrical & Prismatic Cells
Amara Raja had stated that this licensing agreement would facilitate LFP cell production at the Telangana gigafactory. With the signing of the aforementioned agreement, Amara Raja can use GIB EnergyX’s LFP technology to manufacture cylindrical as well as prismatic cells*.
*Cylindrical Lithium cells are smaller in size and can store lesser energy, while prismatic cells are larger in size and can store more energy. However, each of these kinds have their own sets of advantages and disadvantages, which make them suitable for different applications.
Scope of the Agreement
Aforementioned agreement provides Amara Raja Advanced Cell Technologies Pvt. Ltd. (ARACT) access to GIB EnergyX’s cell Intellectual Property (IP). Further, GIB EnergyX will also provide support in developing ARACT’s ‘Gigafactory facilities’. GIB EnergyX will also assist ARACT with the requisite supply chain network to facilitate acquisition of required battery materials. Further, GIB EnergyX will extend customer technical support to ARACT under this agreement.
About Amara Raja Energy & Mobility Ltd.: Amara Raja Energy & Mobility Ltd.’s product range includes batteries for Electric Vehicles & Battery Energy Storage Systems, EV chargers, Li-ion battery packs, industrial and automotive lubricants, and more. The company reported a turnover of Rs. 11,708 crore for FY-24.