Amara Raja Energy and Mobility Ltd is planning to produce 4-6 GWh of lithium iron phosphate (LFP) batteries in the first phase of its new Gigafactory. They have partnered with Gotion-InoBat-Batteries (GIB) to use Gotion’s LFP technology.
New Gigafactory in Telangana
The company is building a ₹9,500 crore Gigafactory in Telangana. Initially, it will have a capacity of 2 GWh and will expand to 16 GWh for cells and 5 GWh for battery packs over the next 10 years. The first phase should be ready by the end of the next financial year.
Focus on Electric Vehicles
Amara Raja will target electric vehicles, such as three-wheelers and passenger cars, with its LFP cells. They are also considering stationary applications in the future.
Technology Partnership
The partnership with GIB provides Amara Raja with access to LFP cell technology, support for setting up the factory, and a global supply chain for critical materials.
NMC and LFP Batteries
While the factory will start with Nickel Manganese Cobalt (NMC) batteries for two-wheelers, Amara Raja expects LFP batteries to dominate the market due to their stability, longer life, and lower costs.
Competitors and Future Plans
Amara Raja faces competition from Exide Industries, which has partnered with SVOLT Energy Technology. Amara Raja is also one of the bidders for the government’s production-linked incentive (PLI) scheme for Advanced Chemistry Cell (ACC) Manufacturing.
Amara Raja is set to start LFP battery production with plans to expand capacity significantly, focusing on electric vehicles and leveraging new technology partnerships to stay competitive in the growing battery market.