Amara Raja to set up Gigafactory for Li-ion Battery Manufacturing in Telangana

Amara Raja

The lithium-ion battery that energizes the vehicle is the most expensive component in an electric vehicle. The price parity between the IC engine vehicle and the Electric vehicle will happen once the battery price decreases.

Tesla has already set up Gigafactories for battery research and manufacturing in the US and China. They produce batteries for Tesla cars and solar applications.

Elon Musk’s Tesla Motors introduced the word “Gigafactory” ‘in 2013 to represent the large-scale production capacity. The annual production capacity of the Gigafactory would be in terms of million (10 lacks).

Amara Raja’s GigaFactory

Amara Raja Batteries Ltd. Is one of the largest battery manufacturers in India. Now they are setting up a Giga factory in the Telangana State of India to research new technologies and manufacture Lithium-Ion batteries.

The company incorporated a subsidiary named Amara Raja Advanced Cell Technologies mainly to facilitate battery research for the electric mobility market. The company works for Lithium-Ion cell chemistries suited for Indian Subcontinent conditions. It already supplies battery packs and chargers to some two and three-wheeler OEMs.

The Mahbubnagar district of Telangana will see an investment of 9600 crores in another 10 years after getting the necessary approvals for it.

Amara Raja’s Plan for Gigafactory

Amara Raja plans to set up the factory in a phased manner a lithium cell factory with a capacity of up to 16 GWh and a battery pack assembly unit of up to 5 GWh. In the first phase, which is likely to take 2-3 years, the company is expected to invest around ₹2,000 crores in the factory, with a 2 GWh capacity. The investment will go to the advanced energy research and innovation center in Hyderabad as well.

The factory will create employment for 4500 people in the state once all the phases are completed. The factory facilitates Telangana’s aspiration to become the electric vehicle manufacturing hub in India.

[Video] Porsche Electric Vehicle Battery

The increased demand for batteries for electric vehicles could be addressed by the large-scale manufacturing of the latest technology-based battery packs.

The Company Says…

Jayadev Galla, Chairman & MD, of 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.  We have had a long association with the state and are excited to finally have the opportunity to establish an industrial base here.” 

Vikramadithya Gourineni, Executive Director, New Energy Business, Amara Raja Batteries said “This latest step is in line with the ‘Energy & Mobility’ roadmap that we laid out last year.  Our ambition is to develop a robust Indian ecosystem with R&D, incubation, testing, and manufacturing – a Giga Corridor for emerging technologies in energy and mobility.”

K T Rama Rao, Minister for Industries & Commerce, Telangana government 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. We aim 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.”

The recognized company could easily reach the customers with their highlighted production capacity to bag large orders for both automotive and industrial applications.

Let’s hope this could reduce the battery price and accelerate electric mobility adoption in India.

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