Amara Raja batteries to set up ₹9,500-crore lithium-ion battery R&D facility in Mahabubnagar

ARBL and the Telangana government signed a Memorandum of Understanding to this effect in Hyderabad on Friday, 2 December.

ByRaj Rayasam

Published Dec 02, 2022 | 6:00 PM Updated Dec 02, 2022 | 6:00 PM

KT Rama Rao (fourth from the left) during the signing of MoU with Amara Raja Batteries Limited. (Supplied)

A state-of-the-art research and manufacturing facility for Lithium-ion battery-making is all set to come up in the Mahabubnagar district of Telangana.

In the next 10 years, Amara Raja Batteries Limited (ARBL) is expected to invest over ₹9,500 crore in this sector after necessary approvals.

ARBL and the state government signed a Memorandum of Understanding (MoU) to this effect in Hyderabad on Friday, 2 December.

Jayadev Galla, Chairman and Managing Director of Amara Raja Batteries, announced the venture in the presence of Telangana Information Technology (IT) and Industries Minister KT Rama Rao and IT Principal Secretary Jayesh Ranjan.

The initial facilities would include an apparently first-of-its-kind advanced energy research and innovation centre in Hyderabad, dubbed the Amara Raja E-hub.

This facility is expected to be equipped with advanced laboratories and testing infrastructure for material research, prototyping, product life cycle analysis, and proof-of-concept demonstrations.

This will reportedly cater to the development needs of Amara Raja as well as provide a range of facilities to other players in the energy and mobility ecosystem.

In addition, Amara Raja is expected to establish a commercial-scale pilot plant and the first Giga-scale cell production facility.

Towards this, the company announced on 3 November the incorporation of a subsidiary named Amara Raja Advanced Cell Technologies Pvt Ltd.

Amara Raja has been working on li-ion cell chemistries specifically suited for Indian subcontinent conditions, and already supplies lithium battery packs and chargers to some two and three-wheeler Original Equipment Manufacturers (OEMs).

‘Will bring innovations, employment opportunities’

Galla 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.”

He added: “We have had a long association with the state and are excited to have the opportunity to establish an industrial base here.”

The company’s executive director of the New Energy Business, Vikramadithya Gourineni, said: “This latest step is in line with the ‘Energy & Mobility’ roadmap that we had laid out last year. Our ambition is to develop a robust Indian ecosystem with Research & Development (R&D), incubation, testing, and manufacturing — a Giga Corridor for emerging technologies in Energy and Mobility.”

KT Rama Rao, congratulating the company, 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.”

He added: “We aim to become the most electrified state in India and having a Gigafactory in Telangana further strengthens our aspiration to become an Electric Vehicle (EV) manufacturing hub and spearhead the EV revolution in India.”