Amara Raja Partners with Ather Energy to Boost EV 2W Battery Production
In a significant move towards bolstering India’s electric vehicle (EV) ecosystem, Amara Raja Energy & Mobility (AREM) has entered into a strategic partnership with Ather Energy to manufacture advanced lithium-ion battery cells for electric two-wheelers. This collaboration will see the production of Nickel Manganese Cobalt (NMC) and Lithium Iron Phosphate (LFP) cells at Amara Raja’s upcoming Gigafactory in Divitipally, Telangana.
A Strategic Leap for India’s EV Market
Amara Raja’s investment of Rs 9,500 crore in the 16 GWh gigafactory is part of its broader vision to become a leading player in the lithium-ion cell manufacturing sector. The partnership with Ather Energy aims to support the localization of EV technologies, reducing dependence on imports and optimizing production costs.
Ather Energy’s Role
Ather Energy, known for its innovative electric scooters, will benefit from the tailored battery cells designed to meet its specific requirements. This move is expected to enhance Ather’s production efficiency and reduce costs, thereby making electric scooters more affordable and accessible.
Expansion Plans and Sustainability Efforts
Amara Raja has ambitious plans to expand its two-wheeler battery manufacturing capacity significantly. The new facility in Chittoor, Andhra Pradesh, inaugurated by George R Oliver, CEO of Johnson Controls, will initially have a capacity of 5 million units, eventually scaling up to 29 million units.
This plant is set to be the largest of its kind in India, with an investment of Rs 700 crore.
Moreover, Amara Raja is committed to sustainability, with the Chittoor facility utilizing 2.7 MW of rooftop solar panels to generate 4.5 million kWh of energy annually, reducing its carbon footprint.
Future Prospects
Looking ahead, Amara Raja plans to invest around Rs 3,000 crore over the next two years, focusing on both its new energy and lead-acid battery businesses. This includes setting up a state-of-the-art R&D center, ePositive Energy Labs, in Hyderabad to spearhead innovation in energy storage solutions.
As the EV market in India continues to grow, with approximately 1.6 million electric vehicles sold in 2023-24, partnerships like the one between Amara Raja and Ather Energy are crucial. They not only accelerate the adoption of electric vehicles but also drive the development of indigenous technologies, positioning India as a significant player in the global EV market.