Amara Raja to Launch India’s First Gigafactory for Lithium-Ion Batteries by End-2025

January 26, 2024
BY Editor Metals

Amara Raja, a frontrunner in India's energy storage sector, is set to make a significant leap in the country's battery manufacturing capabilities. Announced by Vijayanand Samudrala, President of Amara Raja, at the 3rd annual India Battery Manufacturing and Supply Chain Summit in Hyderabad, the company plans to commence commercial production of lithium-ion batteries within the next two years, with the gigafactory operational by the end of 2025.

The upcoming gigafactory marks a pivotal expansion for Amara Raja, integrating advanced technologies across two chemistries—Nickel Manganese Cobalt (NMC) and Lithium Iron Phosphate (LFP)—and two formats, cylindrical and prismatic. With a projected capacity of 16 GWh for lithium-ion battery cells and an additional 5 GWh for battery packs, the facility is poised to cater to a broad spectrum of mobility and energy storage applications.

Samudrala emphasized the necessity of an integrated approach, combining high technology, substantial capital expenditure, and gigascale production with a supportive ecosystem. This includes not only the gigafactory itself but also essential infrastructure like connectivity, utilities, and training facilities, alongside a robust upstream and downstream value chain.

Fostering Innovation through R&D

Adjacent to the gigafactory initiative, Amara Raja is establishing its E Positive Energy Lab, a state-of-the-art R&D facility designed to foster collaboration with customers, suppliers, startups, and innovators. Spanning 300,000 square feet, this hub aims to incubate innovative technologies within the energy sector, underscoring the group's commitment to advancing the industry's technological frontier.

The endeavor is buoyed by significant support from the Indian government, notably through the ACC PLI scheme, and the proactive stance of states like Telangana. This collaborative environment between public and private sectors is heralded as a key driver for India's ambitious goal of achieving 150 GWh of advanced chemistry cell (ACC) capacity by 2030, with Amara Raja's gigafactory contributing significantly to this target.

Dr. Rahul Walawalkar, Founder and President of the India Energy Storage Alliance, highlighted the growing enthusiasm for transforming India into a global hub for advanced energy storage technologies. With the limitations faced by developed nations in localizing manufacturing, India is uniquely positioned to not only meet domestic demands but also contribute to global battery production capacities.

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