By FY30, the company estimates India’s lithium-ion battery market to grow multi-fold to over US$100 billion from the current US$10 billion, driven primarily by the automotive segment.
30 May 2025 | 10956 Views | By Kiran Murali
India’s largest lead-acid battery maker, Amara Raja Energy and Mobility Ltd, is slightly delaying its plans to start operations at its upcoming Gigafactory for lithium-ion cell manufacturing to the financial year 2027. Earlier, the company had said it was looking to start the first production of cells in FY26.
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India’s largest lead-acid battery maker, Amara Raja Energy and Mobility Ltd, is slightly delaying its plans to start operations at its upcoming Gigafactory for lithium-ion cell manufacturing to the financial year 2027. Earlier, the company had said it was looking to start the first production of cells in FY26.
In its investor presentation, the Hyderabad-based company noted that it is shifting the commencement of operations of its Giga cell plant to the second or third quarter of the financial year 2027. The facility will initially start commercial production of cylindrical cells with a capacity of 4 GWh for both Nickel Manganese Cobalt (NMC) and Lithium Iron Phosphate (LFP) chemistries.
Amara Raja is setting up the Gigafactory in Telangana through its New Energy Business unit — Amara Raja Advanced Technologies — at an estimated cost of Rs 9,500 crore. The company targets a total cell manufacturing capacity of 16 GWh in phases by the end of this decade, catering to both automotive and storage applications. It already has two operational battery pack assembly facilities: one in Tirupati (1 GWh capacity for stationary applications) and another in Divitipally (1.5 GWh capacity for mobility applications).
The company estimates India’s lithium-ion battery market to grow multi-fold to over US$100 billion by FY30 from the current US$10 billion, with a CAGR of over 58%. The projected demand is expected to be driven primarily by the automotive segment, which is likely to account for 80–85% of the demand, while the remaining 15–20% is expected to come from the stationary segment.
When asked about the delay in the commencement of operations at the cell manufacturing plant, the management said: “Barring plus or minus a few quarters, it is largely in line with what we have been sharing up until now. The capacity should be coming online more or less as planned, largely catering to our light electric mobility business.”
So far, Amara Raja has invested Rs 850 crore in its subsidiary ARAT, which plays a key role in the development of Li-ion cells, battery packs, and charging solutions. It will invest an additional Rs 1,000 crore in ARAT in FY26. It is also setting up an R&D lab for developing Li-ion cells and battery pack assembly, which is likely to be opened this year.
Though Li-ion cells based on NMC and LFP are popular in the electric vehicle industry, LFP cells are preferred globally, considering their thermal stability, longer life cycle, and lower costs. The concerns of comparatively lower energy density in LFP batteries are being addressed through new technologies and innovations.
The management had earlier stated that it believes LFP will occupy almost 75–80% of the overall market requirements going forward, while NMC will form a smaller portion. The company's capacity allocation at the Gigafactory will also be in line with this projection.
Amara Raja has a tie-up with a Chinese company with which it has jointly developed an NMC-based 2170 cylindrical cell. It has also partnered with Gotion-InoBat-Batteries to manufacture Li-ion cells based on LFP. The company has recently tied up with automakers including Ather Energy and Piaggio India to supply Li-ion batteries.
On the other hand, Amara Raja’s major competitor, Exide Industries, is planning to start trial operations at its upcoming Li-ion cell manufacturing plant in Bengaluru this calendar year and begin serial production within 4–5 months after the homologation process. The facility will have a capacity of 6 GWh in its first phase, which will eventually be ramped up to 12 GWh. The company said it will start with a cylindrical NMC line for two-wheeler applications.
Exide has a tie-up with China-based SVOLT Energy Technology, which develops and manufactures Li-ion batteries and storage solutions for multiple applications. Exide has secured the rights to use and commercialize SVOLT’s technology and know-how for lithium-ion cell manufacturing. Recently, Hyundai Motor Co. and Kia Corp. partnered with Exide to equip their future EVs in the Indian market with locally produced Li-ion batteries based on LFP chemistry.
New players like Ola Electric, Reliance Industries, Tata Group, JSW Group, and GODI India are also actively setting up large-scale Li-ion cell manufacturing facilities. Ola Electric has already started trial production of cells from its facility.