Amara Raja to supply Li-ion batteries to Ather Energy

In a significant move that underscores India's push towards electric mobility, Amara Raja Energy & Mobility Limited (ARE&M), one of India's leading battery manufacturers, has announced a strategic partnership with prominent electric two-wheeler maker Ather Energy. The collaboration, formalized through a Memorandum of Understanding (MoU), will see Amara Raja develop and supply advanced lithium-ion cells for Ather's electric scooters.

This partnership marks a crucial step for Amara Raja as it seeks to diversify its portfolio and reduce its dependence on the traditional lead-acid battery segment. The company, long known for its automotive and industrial lead-acid batteries, is making aggressive inroads into the fast-growing lithium-ion and EV battery market. This shift comes as India's automotive landscape undergoes a rapid transformation towards electrification.

Under the agreement, Amara Raja's wholly-owned subsidiary, Amara Raja Advanced Cell Technologies Private Limited (ARACT), will collaborate with Ather to develop and supply NMC (Nickel Manganese Cobalt) and LFP (Lithium Iron Phosphate) lithium-ion cells. These cells will be produced at Amara Raja's upcoming Gigafactory in Divitipally, Telangana, for which the company has announced an investment of Rs 9,500 crores to establish a 16GWh capacity.

Ather Energy, a major player in India's electric two-wheeler market, has been rapidly expanding its production capabilities with two manufacturing facilities in Hosur, Tamil Nadu, and plans for another in Maharashtra. The Bengaluru-based startup, known for its high-performance electric scooters, is reportedly planning to go public next year, riding on the growing demand for electric vehicles in India.

This partnership is particularly significant in the context of India's EV industry, which currently relies heavily on imported batteries, primarily from China. By localizing the production of lithium-ion cells, Amara Raja and Ather aim to reduce dependency on imports and strengthen India's position in the global EV supply chain.

Vikramaditya Gourineni, Executive Director of Amara Raja Energy & Mobility Ltd, emphasized the company's progress in building world-class facilities for cell and battery pack manufacturing. He stated, "Our recent collaboration with Gotion-InoBat will accelerate our efforts towards the same. We are proud to partner with Ather and together we will focus on building market-relevant solutions in India's journey towards indigenization of Electric Vehicle technologies."

Tarun Mehta, Co-founder & CEO of Ather Energy, highlighted the importance of this collaboration in promoting homegrown cell technology. He said, "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."

Industry projections suggest that electric two-wheeler penetration in India could reach 40% by 2030. This partnership between Amara Raja and Ather Energy positions both companies to capitalize on this growing market while contributing to India's goals of reducing carbon emissions and achieving energy independence in the automotive sector.