Amara Raja 16 GWh Gigafactory investment Telangana lithium-ion cell manufacturing : Amara Raja Energy announces an additional ₹1200 crore investment for its 1 GWh lithium-ion cell Gigafactory in Telangana targeting NMC cells for two-wheelers by FY27. Explore its strategy, partnerships and how it compares to Exide and Ola in India’s evolving battery landscape.
In a significant move that underscores its commitment to India’s electric future Amara Raja Energy & Mobility Ltd. the country’s leading lead-acid battery maker, has announced a major capital infusion for its new energy ambitions. The company will invest an additional ₹1,200 crore by FY27 into its lithium-ion cell manufacturing project bringing the total investment for the initial phase to ₹2,400 crore.
This investment is a critical component of Amara Raja’s broader strategic pivot. The company is establishing a massive Gigafactory in Telangana through its subsidiary Amara Raja Advanced Cell Technologies with a long-term vision to achieve a total cell manufacturing capacity of 16 GWh by 2030.
Breaking Down the Investment and Timeline
The newly announced funds will be channeled to complete three core facilities essential for bringing made-in-India lithium-ion cells to market:
- A Research Lab: For in-house development of next-generation battery chemistries and technologies.
- A Customer Qualification Plant (CQP): A small-scale line to produce sample cells for automakers to test, validate, and homologate for their vehicles.
- The 1 GWh Gigafactory: The first commercial-scale production line.
According to the company’s management, equipment orders for the CQP and research lab are already placed, with functionality expected by the end of this financial year. Construction of the Gigafactory building has commenced, with commercial production of cells slated to begin by the end of FY27.
Strategy and Technology: NMC First, Then LFP
Amara Raja’s initial production strategy is sharply focused. The first 1 GWh of capacity will exclusively produce 21700 cylindrical cells using Nickel Manganese Cobalt (NMC) chemistry. This chemistry is favored for its high energy density making it ideal for the electric two-wheeler market a segment experiencing rapid growth in India.
The company is not navigating this path alone. It has a technical collaboration with a Chinese firm to co-develop its NMC 2170 cell and a separate partnership with Gotion High-Tech to access Lithium Iron Phosphate (LFP) technology known for its longer life and superior safety. After the initial 1 GWh line is operational Amara Raja will decide whether to double its NMC capacity or pivot to producing LFP cells.
This asset-light approach to technology, leveraging global partnerships, allows Amara Raja to accelerate its market entry while mitigating R&D risks.
The Competitive Landscape Heats Up
Amara Raja’s aggressive investment highlights the intensifying battle for dominance in India’s nascent lithium-ion cell manufacturing space.
- Exide Industries: Its main traditional rival, Exide, is also charging ahead. Partnering with China’s SVOLT, Exide plans to start trial operations at its 6 GWh Bengaluru plant this calendar year, with serial production to follow shortly after. Like Amara Raja, Exide is also starting with a cylindrical NMC line for two-wheelers.
- Ola Electric: In a contrasting move, OEM Ola Electric has paused its ambitious cell expansion plans. Citing slower-than-expected market growth, Ola will limit its capacity to 5 GWh until FY29, a significant pullback from its original 20 GWh target by mid-2026.
This divergence in strategy—between established battery giants building for the broader market and an integrated OEM scaling back—paints a complex picture of an industry calibrating to real-world demand.
The Road Ahead
Amara Raja’s deepened investment is a strong vote of confidence in India’s long-term electric mobility and energy storage story. With two operational pack assembly plants and a clear phased roadmap for cell manufacturing, the company is methodically building an integrated ecosystem.
By securing partnerships, focusing on a specific market segment (two-wheelers) initially and making staggered investments, Amara Raja is positioning itself not just as a successor to its lead-acid legacy but as a foundational pillar for an Aatmanirbhar Bharat in advanced energy storage solutions. The race to power India’s EVs is on and the starting gun has officially been fired
