Amara Raja Energy & Mobility Limited (ARE&M), a leading battery manufacturer in India, has announced a partnership with Ather Energy, a well-known electric scooter maker. Through this agreement, Amara Raja will develop and supply lithium-ion cells for Ather’s electric scooters.
This partnership is a big step for Amara Raja as it moves from traditional lead-acid batteries to the fast-growing lithium-ion and electric vehicle (EV) battery market. The company aims to support India’s shift to electric mobility.
Amara Raja’s subsidiary, Amara Raja Advanced Cell Technologies Private Limited (ARACT), will work with Ather to produce NMC (Nickel Manganese Cobalt) and LFP (Lithium Iron Phosphate) lithium-ion cells. These cells will be made at Amara Raja’s upcoming Gigafactory in Divitipally, Telangana. The company is investing Rs 9,500 crore to build this 16GWh capacity plant.
Ather Energy is expanding its production with facilities in Hosur, Tamil Nadu, and plans for another in Maharashtra. Known for its high-performance electric scooters, Ather is planning to go public next year due to the increasing demand for electric vehicles in India.
This partnership aims to reduce India’s reliance on imported batteries, mainly from China, by localizing lithium-ion cell production. This move will strengthen India’s position in the global EV supply chain.
Vikramaditya Gourineni, Executive Director of Amara Raja, highlighted the company’s progress in building facilities for cell and battery pack manufacturing. He said, “Our collaboration with Gotion-InoBat will boost our efforts. We are proud to partner with Ather and focus on building solutions for India’s journey towards EV technology.”
Tarun Mehta, Co-founder & CEO of Ather Energy, emphasized the importance of homegrown cell technology. He said, “This will help us optimize costs and source lithium-ion cells tailored to Ather’s needs, enhancing our ability to innovate and scale.”
Projections suggest that electric two-wheeler use in India could reach 40% by 2030. This partnership positions Amara Raja and Ather Energy to capitalize on the growing market and contribute to India’s goals of reducing carbon emissions and achieving energy independence in the automotive sector.
