Amara Raja to invest Rs 9,500 crore in lithium-ion battery gigafactory in Telangana

Amara Raja Batteries, one of India’s leading industrial and automotive battery companies, today signed a memorandum of understanding (MoU) with the government of Telangana to set up state-of-the-art research and manufacturing facilities for lithium-ion battery making in Mahbubnagar district, Telangana.

Over the next 10 years, the company plans to invest over Rs 9,500 crore. The initial facilities would include a first-of-its kind advanced energy research and innovation centre in Hyderabad, dubbed the ‘Amara Raja E-hub’.  This facility will be equipped with advanced laboratories and testing infrastructure for material research, prototyping, product lifecycle analysis and proof-of-concept demonstration. This will cater to the development needs of the Amara Raja as well as to provide a range of facilities open to other players in the energy and mobility ecosystem. 

Amara Raja envisions the E-hub to serve as a much-needed catalyst for multi-stakeholder collaboration and fostering entrepreneurship in these emerging sectors. In addition, as part of its journey towards giga-scale manufacturing of advanced cell technology products, Amara Raja plans to set up commercial scale pilot plant and the first giga scale cell production facility.

In line with this programme, the company had on November 3, 2022 announced the incorporation of a subsidiary named Amara Raja Advanced Cell Technologies. Amara Raja has been working on Li-ion cell chemistries specifically suited for Indian subcontinent conditions, and already supplies lithium battery packs and chargers to some two- and three-wheeler OEMs.

Jayadev Galla, Chairman and MD, Amara Raja Batteries said: "This strategic partnership with the government of Telangana is a giant leap for Amara Raja and will bring in the impetus for innovations in sustainable technologies for the whole region, in addition to generating employment opportunities.”

K T Rama Rao, Minister for Industry and Commerce, IT, E&C, and MA & UD, said, "Telangana has been a frontrunner in adopting sustainability, and it is a proud moment for the state to welcome the country’s largest ever investment in the lithium-ion cell manufacturing sector. Our aim is to become the most electrified state in India, and having a Gigafactory in Telangana further strengthens our aspiration to become an EV manufacturing hub and spearhead the EV revolution in India."