Amara Raja to Launch Bulk Production of Lithium-Ion EV Cells by 2027
Amara Raja plans to begin bulk production of EV cells in 2027
The Economic Times
Image: The Economic Times
Amara Raja Energy & Mobility plans to begin bulk production of lithium-ion cells for electric vehicles in 2027, becoming the second Indian company to do so. The company aims to invest ₹10,000 crore (approximately $1.2 billion USD) through 2032, focusing on a balanced approach between mobility and energy storage solutions.
- 01Amara Raja targets 2027 for bulk production of lithium-ion cells.
- 02The company plans to invest ₹10,000 crore (approximately $1.2 billion USD) through 2032.
- 03Locally produced cells are expected to have a 15% price premium over imports initially.
- 04Production will begin at a megawatt-hour scale this year, with a focus on electric two-wheelers.
- 05The company aims for an equal split in capacity between mobility and energy storage solutions.
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Amara Raja Energy & Mobility, based in Mumbai, India, is set to commence bulk production of lithium-ion cells for electric vehicles by 2027, becoming the second Indian manufacturer to do so, following Ola Electric. Executive Director Vikram Gourineni indicated that the company is targeting an investment of ₹10,000 crore (approximately $1.2 billion USD) through 2032 to enhance its lithium-cell manufacturing capabilities. Initially, locally produced cells will carry a 15% price premium over imports due to the time required to establish a robust supply chain similar to that developed by China over two decades. The company plans to start production at a megawatt-hour scale this year, with a focus on the electric two-wheeler segment and aims for a 2 GWh capacity at its first Gigafactory. Additionally, Amara Raja is diversifying its production to include energy storage solutions, reflecting a strategic pivot in its capacity allocation.
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The establishment of local lithium-ion cell production could reduce dependency on imports and potentially lower costs in the long run, benefiting electric vehicle manufacturers and consumers.
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