Amara Raja To Enter Into Strategic Agreement With Ather Energy

On August 1, 2024, Amara Raja Advanced Cell Technologies Private Limited (ARACT), a subsidiary of Amara Raja Energy & Mobility Limited (ARE&M), announced that it will sign a Memorandum of Understanding (MoU) with Ather Energy.

This partnership will focus on developing and supplying advanced lithium-ion cells, including Nickel Manganese Cobalt (NMC) and Lithium Iron Phosphate (LFP) cells. These cells will be produced at their new Gigafactory in Divitipally, Telangana.

Amara Raja recently partnered with Gotion-InoBat-Batteries (GIB) to adapt global LFP technology for Indian conditions and has also teamed up with Jiangsu Highstar Battery Manufacturing Co. for NMC technology. With the shift towards clean energy, especially in the electric two-wheeler segment, industry forecasts expect EV penetration to hit 40% by 2030.

Both Amara Raja and Ather Energy have ambitious plans to capture this growing market. Ather Energy currently operates 2 manufacturing plants in Hosur, Tamil Nadu, with plans for another facility in Maharashtra.

Amara Raja aims to become a leading producer of lithium-ion and advanced chemistry cells in India, with a planned ₹9,500 crore investment for a 16GWh giga factory in Telangana. The company will also enhance its R&D capabilities with a new research and innovation centre, ‘ePositive Energy Labs,’ in Hyderabad.

Tarun Mehta, Co-founder and 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. Our aim is to help the domestic industry grow significantly to support India’s energy demand now and in the coming future.”

About Amara Raja Energy & Mobility Limited

Amara Raja Energy & Mobility Limited (ARE&M) offers a wide range of products and solutions, including energy storage systems, lithium-ion cell manufacturing, various EV chargers, battery pack assembly, automotive and industrial lubricants, and research into new chemistries.

On August 01, 2024, Amara Raja Energy & Mobility Limited’s share price opened at ₹1,650.70, touching the day’s high at ₹1,666.00, as of 12:42 PM on the NSE.

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