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Amara Raja Plans 50% Increase In Gigafactory Battery Capacity

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The Gigafactory, set up for lithium-ion cells and battery packs eyes a capacity of 25 GWh annually, a jump from the initial estimate.

Amara Raja Energy and Mobility Limited has indicated that the company is contemplating a substantial expansion of its planned lithium-ion cell manufacturing capacity at its upcoming Gigafactory to exceed 25 GWh annually.

The company initially aimed for a capacity of 16 GWh for cells and 5 GWh for battery packs over the next ten years.

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Amara Raja Batteries’ Chief Operating Officer Niranjan C. mentioned that the company is now reconsidering and looking forward to increasing the capacity by almost 56%. The company believes that achieving a more extensive scale would provide it with a competitive advantage on a global level.

The company, headquartered in Hyderabad, is investing Rs 95 billion in a Gigafactory in Telangana for lithium-ion cells and battery packs.

The first phase of the factory, which can produce 2 GWh, is scheduled to be completed by the end of the next fiscal year.

Recently, Amara Raja announced a technology partnership with Gotion-InoBat-Batteries (GIB) EnergyX Slovakia, a subsidiary of Gotion High-Tech, to license the technology for manufacturing lithium-ion cells in cylindrical and prismatic forms.

According to Autocar Professional, the company aims to establish an initial LFP cell manufacturing capacity of 4-6 GWh at its Gigafactory, though specific timelines are not yet clear.

Furthermore, Amara Raja is partnering with a Chinese firm to develop NMC-based 2170 cylindrical cells for initial production at its Gigafactory, focusing on two-wheelers.

Indian battery manufacturers believe that Gigafactories exceeding 20 GWh in scale make them capable of competing globally. Currently, advanced chemistry cell manufacturing is in its early stages within the country. India’s battery production capacity is expected to reach 150 GWh by the decade’s end.

Apart from Amara Raja, other companies like Ola Electric, Exide Industries, Reliance Industries, and GODI India are also establishing Gigafactories in India.

The company is also one of seven bidders for the government’s production-linked incentive (PLI) scheme, which aims to foster the manufacturing of 10 GWh Advanced Chemistry Cells (ACC).

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