Amara Raja Energy & Mobility Ltd, India’s largest lead-acid battery manufacturer, will commit an additional ₹1,200 crore by FY27 towards its lithium-ion cell manufacturing initiative. This brings the total investment in its first 1 GWh cell production line to ₹2,400 crore.
“So far, we have deployed ₹1,200 crore in the New Energy subsidiary, covering both capital expenditure and working capital. Another ₹1,200 crore will be required to complete the research lab, customer qualification plant, and the gigafactory with 1 GWh capacity,” the management stated on Monday.
The gigafactory is coming up in Telangana under Amara Raja Advanced Technologies, with an overall project cost pegged at ₹9,500 crore. The company plans to scale total cell manufacturing capacity to 16 GWh in phases by 2030, serving both electric mobility and stationary storage markets.
The facility will initially roll out Nickel Manganese Cobalt (NMC) cells for two-wheeler applications by the end of FY27. Construction of the main gigafactory building has just started, while procurement for plant equipment is underway.
Meanwhile, the company expects its customer qualification plant (CQP) and research lab to be operational by the end of FY25, with the lab possibly ready within this calendar year. The initial 1 GWh capacity will be dedicated to manufacturing 21700-format NMC cylindrical cells. Future expansion could either double the NMC capacity to 2 GWh or shift to Lithium Iron Phosphate (LFP) cylindrical cells in multiple form factors.
Amara Raja has co-developed an NMC 2170 cylindrical cell with a Chinese partner and teamed up with Gotion-InoBat-Batteries for LFP technology. It has also signed supply agreements with OEMs including Ather Energy and Piaggio India.
Rival Exide Industries is preparing to begin trial runs at its new Bengaluru-based Li-ion cell plant later this year, with commercial production expected within 4–5 months of homologation. The facility’s first phase will offer 6 GWh capacity, expandable to 12 GWh. Exide has invested ₹3,702 crore in its Li-ion business so far, starting with cylindrical NMC cells for two-wheelers.
Ola Electric, which has already started operations at its own gigafactory, has postponed its cell manufacturing scale-up. Instead of the earlier plan of 20 GWh by mid-2026, Ola will limit capacity to 5 GWh until FY29, citing slower-than-expected growth in the EV sector.
Amara Raja Energy & Mobility Limited (ARE&M) offers a broad portfolio of solutions spanning energy storage systems, lithium-ion cell manufacturing, EV charging infrastructure, Li-ion battery pack assembly, automotive and industrial lubricants, and the development of next-generation chemistries.
The company is among India’s largest producers of energy storage products for both industrial and automotive sectors. It is a trusted partner to leading telecom operators, telecom equipment manufacturers, UPS providers (OEM and replacement markets), Indian Railways, as well as the power, oil, and gas industries.
ARE&M’s industrial battery brands include PowerStack®, AmaronVolt®, and Quanta®. In the automotive space, the company manufactures the market-leading Amaron® and Powerzone brands, supported by an extensive nationwide sales and service network.
Amara Raja also maintains strong original equipment (OE) relationships with major automakers such as Ashok Leyland, Ford India, Honda, Hyundai, Mahindra & Mahindra, Maruti Suzuki, and Tata Motors. Beyond India, its industrial and automotive batteries are exported to more than 50 countries worldwide.
