Amara Raja, Ather to collaborate on lithium batteries for two-wheelers

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Amara Raja Energy & Mobility Ltd announced today its arm Amara Raja Advanced Cell Technologies will collaborate with Ather Energy to develop and supply NMC (nickel manganese cobalt) and LFP (lithium iron phosphate) lithium-ion and other advanced chemistry cells for two-wheeler battery packs. The cells will be produced locally at Amara Raja Energy & Mobility’s upcoming 16 GWh gigafactory in Divitipally, Telangana.

Both the companies will be signing a Memorandum of Understanding (MoU) for the collaboration.

Amara Raja recently entered into an agreement with Gotion-InoBat-Batteries (GIB) to localise current global LFP technology for making lithium-Ion cells specifically suited for Indian conditions.

The company also has an agreement with Jiangsu Highstar Battery Manufacturing Co. for NMC technology.

With India focused on clean and green energy, the automotive industry is witnessing a big transition towards electric vehicles (EVs), particularly in the two-wheeler segment. Industry projections point towards EV 2W penetration to reach 40% by 2030. Both Amara Raja and Ather have chartered out ambitious plans to tap into this growing market potential.

Ather Energy has two manufacturing facilities in Hosur, Tamil Nadu, with one dedicated to battery production and the other to vehicle assembly. Ather also has recently announced the setting up of another plant in Maharashtra.

Amara Raja is committed to providing products and solutions for e-mobility and energy storage markets and aims to be one of the largest manufacturers of Li-ion and other advanced chemistry cells in India. It had announced an investment outlay of INR 9,500 crore to establish a 16 GWh gigafactory in Telangana. Additionally, the company has established a state-of-the-art advanced research and innovation centre called ‘ePositive Energy Labs’ in Hyderabad.

Tarun Mehta, co-founder & CEO at Ather Energy, said, “Our focus has always been on designing and building products from scratch in India, with most of our components, aside from cells, sourced domestically. Now, we’re taking a significant step forward by promoting homegrown cell technology. This will help us optimize costs and enable us to source lithium-ion cells tailored to Ather’s specific requirements, further enhancing our ability to innovate and scale efficiently.”

Vikramaditya Gourineni, executive director, Amara Raja Energy & Mobility Ltd said, “At Amara Raja, we have significantly progressed in our efforts to building world-class facilities to manufacture cell and battery packs customised for Indian conditions. Our recent collaboration with Gotion-InoBat will accelerate our efforts towards the same. We are proud to partner with Ather and together we will focus on building market relevant solutions in India’s journey towards indigenisation of electric vehicle technologies.”

Amara Raja Energy & Mobility develops a diverse range of solutions and products, which includes energy storage solutions, lithium-ion cells, EV chargers, Li-ion battery packs, automotive and industrial lubricants, and exploration of new chemistries, among others. It is also one of the largest manufacturers of energy storage products for both industrial and automotive applications in India. Amara Raja also supplies to major telecom service providers, telecom equipment manufacturers, the UPS sector, Indian Railways, and the power, oil & gas industry segments.

Ather Energy, an electric vehicle manufacturer, has also established a public charging network, called the Ather Grid, which is designed and built in India. It has installed 1900 fast chargers across 200 cities as of March 2024. Ather has 191 Indian and international patent applications, 600+ trademarks, and 200+ Indian and International design registrations to its name.

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