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Battery manufacturer Amara Raja Energy & Mobility is evaluating the possibility of setting up a dedicated battery pack manufacturing plant for passenger electric vehicles. The company has initiated discussions with several automakers, marking a potential expansion of its EV business beyond its current focus on electric two- and three-wheelers.
The company said that a dedicated passenger vehicle battery pack facility was not part of Phase 1 of its Amara Raja Giga Corridor in Telangana. However, ongoing discussions with passenger vehicle manufacturers have prompted the company to evaluate the possibility of setting up such a facility. According to Amara Raja, potential customer nominations could emerge during the current financial year, although discussions are still ongoing.
The proposed facility would strengthen the company existing battery pack assembly operations. Amara Raja expects battery packs to continue making a significant contribution to its lithium-ion business revenue in the near term as domestic cell manufacturing gradually scales up.
The company said its first lithium-ion cell manufacturing plant, with an initial capacity of around 2 GWh, is progressing towards commissioning by the middle of next year. The facility has been designed for future expansion to 6 GWh. In addition, the company continues to target a total manufacturing capacity of 16 GWh as part of its commitment to the Telangana government.
The initial cell production programme will focus on Nickel Manganese Cobalt (NMC) chemistry, which currently sees strong demand in the electric two-wheeler segment. However, Amara Raja expects a larger share of future capacity additions to be based on Lithium Iron Phosphate (LFP) chemistry, as passenger vehicle manufacturers increasingly shift towards the technology. The company said future production lines will remain flexible enough to accommodate newer chemistries, including sodium-ion technology.
Amara Raja also acknowledged that battery cells manufactured in India could remain more expensive than Chinese imports during the initial years. The company said localisation would require large-scale production, a stronger domestic battery materials ecosystem and supportive policy measures.
As part of its localisation strategy, the company will first validate new battery cell chemistries at its newly inaugurated Customer Qualification Plant before moving them to gigafactory-scale production. According to Amara Raja, this pilot-scale approach will help reduce manufacturing defects and scrap rates before mass production.
