Amara Raja Energy and Mobility Ltd, India’s largest manufacturer of lead-acid batteries, has deferred the start of operations at its upcoming lithium-ion cell Gigafactory to the financial year 2027. The company had initially aimed to begin production in FY26.
In a recent investor presentation, the Hyderabad-based firm confirmed that the first phase of operations at the Telangana facility will now commence in the second or third quarter of FY27. The plant will begin with the commercial production of 4 GWh of cylindrical lithium-ion cells, supporting both Nickel Manganese Cobalt (NMC) and Lithium Iron Phosphate (LFP) chemistries.
The Gigafactory, being established under the company’s New Energy Business unit, Amara Raja Advanced Technologies, involves a planned investment of ₹9,500 crore. The long-term objective is to scale up to 16 GWh of total cell manufacturing capacity by the end of the decade, addressing demand from both automotive and energy storage sectors. Amara Raja already operates two battery pack assembly units: one in Tirupati with a 1 GWh capacity for stationary storage, and another in Divitipally with 1.5 GWh capacity for mobility solutions.
The company projects India’s lithium-ion battery market will grow from US$10 billion to over US$100 billion by FY30, supported by a compound annual growth rate exceeding 58%. The bulk of this demand—approximately 80–85%—is expected to come from the electric vehicle segment, with the remainder attributed to stationary applications.
Amara Raja has so far invested ₹850 crore in its subsidiary ARAT and plans to invest an additional ₹1,000 crore in FY26. ARAT is responsible for lithium-ion cell development, battery pack production, and charging technologies. An R&D laboratory for advanced cell and battery development is also under construction and is expected to be completed this year.
The company believes that LFP cell technology will dominate future market demand due to its thermal stability, longer cycle life, and lower cost, despite its lower energy density compared to NMC. Technological advancements are underway to address these limitations. In alignment with this market outlook, Amara Raja plans to allocate most of its upcoming cell production capacity to LFP.
Amara Raja is working with international partners to enhance its capabilities. It has developed an NMC-based 2170 cylindrical cell with a Chinese partner and has formed a collaboration with Gotion-InoBat-Batteries for LFP-based cell production. Recent agreements with automotive manufacturers such as Ather Energy and Piaggio India will see the company supplying lithium-ion batteries for electric mobility.
Meanwhile, Exide Industries, one of Amara Raja’s key competitors, is preparing to start trial operations at its lithium-ion cell plant in Bengaluru later this year. The facility will begin with 6 GWh of capacity, later expanding to 12 GWh. Initial production will focus on NMC cylindrical cells for two-wheelers. Exide has partnered with SVOLT Energy Technology of China for technology transfer and has secured agreements with Hyundai Motor Co. and Kia Corp. for supplying LFP-based batteries for electric vehicles in India.
Several new entrants, including Ola Electric, Reliance Industries, Tata Group, JSW Group, and GODI India, are also progressing with plans to establish large-scale lithium-ion cell production facilities. Ola Electric has already commenced trial production at its plant.
Amara Raja Energy & Mobility Limited (ARE&M) offers a comprehensive portfolio of energy and mobility solutions, spanning energy storage systems, Lithium-ion cell production, a wide range of EV chargers, Li-ion battery pack assembly, and automotive and industrial lubricants. The company is actively involved in researching advanced battery chemistries to drive future innovations. ARE&M stands as one of India’s largest producers of energy storage products catering to both automotive and industrial sectors.
Amara Raja is a trusted partner for key players in telecom, UPS, railways, power, and oil & gas industries, with its industrial battery brands—PowerStack®, AmaronVolt®, and Quanta®—widely recognized in the market. Its automotive battery brands, Amaron® and Powerzone, lead the Indian market and are distributed through an extensive nationwide network of dealers and service centers. The company maintains original equipment (OE) supply partnerships with major automobile manufacturers such as Tata Motors, Maruti Suzuki, Hyundai, Honda, Mahindra & Mahindra, Ashok Leyland, and Ford India. Amara Raja’s products are also exported to over 50 countries, reinforcing its global footprint in the energy storage and mobility space.
