A major step toward demonstrating India’s dedication to electric mobility has been taken with the strategic alliance that top battery producer Amara Raja Energy & Mobility Limited (ARE&M) has formed with top electric two-wheeler manufacturer Ather Energy. Through this partnership, which is formalized in a Memorandum of Understanding, Amara Raja will create and provide cutting-edge lithium-ion batteries for Ather’s electric scooters.
For Amara Raja, forming this cooperation is a crucial step toward diversifying its product line and lowering its dependency on antiquated lead-acid battery technology. The company is currently taking big steps into the expanding lithium-ion and electric vehicle (EV) battery markets, while being best known historically for its lead-acid automotive and industrial batteries. This shift is appropriate given how quickly India’s auto industry is electrifying.
According to the terms of the agreement, Amara Raja Advanced Cell Technologies Private Limited (ARACT), a wholly-owned subsidiary of Amara Raja, will collaborate with Ather to develop and provide lithium-ion cells that are NMC (nickel manganese cobalt) and LFP (lithium iron phosphate). Amara Raja is to invest Rs 9,500 crores to build a 16GWh capacity facility at its upcoming Gigafactory in Divitipally, Telangana, where these cells will be produced.
A major player in the Indian electric two-wheeler market, Ather Energy is now growing its production footprint with facilities in Hosur, Tamil Nadu, and a new location in Maharashtra. Driven by the growing demand for electric cars in India, this high-performance electric scooter startup based in Bengaluru is ready to make its public debut in the upcoming year.
The EV industry in India is now heavily dependent on battery imports, primarily from China, which underscores the significance of this relationship. By producing lithium-ion cells domestically, Amara Raja and Ather hope to reduce dependency on imports and elevate India’s position in the world’s EV supply chain.
Amara Raja Energy & Mobility Ltd.’s executive director, Vikramaditya Gourineni, spoke about the company’s achievements in setting up world-class facilities for the production of cells and battery packs. He mentioned that these efforts would be strengthened by their new partnership with Gotion-InoBat. He took great satisfaction in working with Ather to create solutions that cater to the Indian market and help bring electric vehicle technology home.
Ather Energy’s co-founder and CEO, Tarun Mehta, stressed the importance of this collaboration in advancing homegrown cell technology. He said that by working together, they would be able to save expenses and acquire lithium-ion cells that are precisely what Ather requires, which would improve their capacity for innovation and growth.
Industry projections suggest that by 2030, India may embrace 40% of electric two-wheelers. Amara Raja and Ather Energy’s collaboration enables both companies to take advantage of this expanding market and support India’s efforts to reduce carbon emissions and become energy independent in the automotive industry.
