Amara Raja Continues Li-ion Battery Development Amid Challenges
Amara Raja Energy & Mobility Limited, India’s major manufacturer of automotive batteries and allied products, is setting up a Lithium-ion (Li-ion) cell manufacturing plant in Telangana. The company is moving forward with this development despite facing challenges related to technology transfer agreement with its Chinese partner, Gotion.
Amara Raja Taking the Li-ion Plant Forward Despite Challenges with Chinese Partner
According to Amara Raja, the challenges mentioned above are linked to the Chinese government’s increasing restrictions on battery technologies and critical material supply chains, which have impacted the transfer of technologies to overseas partners.
Earlier in 2024, the company had signed an agreement with China’s GIB EnergyX Slovakia (a subsidiary of Gotion) to receive technical support for developing a Li-ion cell manufacturing plant. However, during its FY26 earnings call, management revealed that certain difficulties have arisen regarding the agreement, particularly with respect to technology transfers.
But despite the difficulties, Amara Raja remains committed to the project.
Amara Raja Plans Rs. 1,700 Cr. CapEx for FY27
During its FY26 earnings call, Amara Raja Energy & Mobility announced a capital expenditure (CapEx) of Rs. 1,700 crore for FY27. This CapEx will support both Li-ion battery development , BESS as well as the traditional Lead-Acid battery business.
Major Investment to Support Li-ion Cell Plant and BESS Facility
Approximately INR 1,100 to 1,200 Cr. of the investment will support the development of the company’s Li-ion cell plant and Battery Energy Storage System (BESS) facility.
The Li-ion cell manufacturing plant is being established at Divitipalli in Telangana’s Mahbubnagar district. Under the first phase of development at the plant, Amara Raja plans to commence production from a 2 GWh cell manufacturing line by June 2027.
In addition, Amara Raja’s BESS factory is also being developed at Divitipalli with an initial production capacity of 5 GWh. The company expects the facility to begin commercial operations by the end of 2026.
Rs. 400 Crore Allocated to Lead-Acid Battery Business
Amara Raja has earmarked Rs. 400 crore for its lead-acid battery business during the earnings call.
The company did not disclose any further information on the expenditure within the segment. However, management indicated that the investment will primarily focus on expanding production capacities across its existing manufacturing facilities and further strengthening its lead-acid battery operations.
Amara Raja Targets Up to 16 GWh Li-ion Cell Capacity by 2030
Looking ahead, Amara Raja has set a target of achieving an annual lithium-ion cell production capacity of up to 16 GWh by 2030. The expansion roadmap highlights the company’s commitment to building a domestic battery manufacturing ecosystem.