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Amara Raja Energy & Mobility has stated that while a domestic lithium-ion cell manufacturing ecosystem is gradually taking shape in India, it is unlikely to bring immediate cost benefits to electric vehicles. According to Executive Director Vikram Gourineni, locally produced cells could carry at least a 15% price premium over imports in the near term, as building a complete supply chain—from raw materials to components—will take time.
He noted that unless domestic manufacturers achieve a production scale of 8–10 GWh and develop a robust supporting ecosystem, the economics will remain unfavourable for EV makers.
Amara Raja is targeting 2027 to begin bulk production of lithium-ion cells, positioning itself as one of the early entrants in local cell manufacturing after Ola Electric. The company plans to initiate production at a megawatt-hour scale this year, supplying commercial samples to Indian customers for qualification. This will be followed by large-scale production at its first 2 GWh Gigafactory in 2027, primarily catering to the electric two-wheeler segment.
To diversify demand and reduce risk, the company also intends to supply cells to adjacent sectors such as power tools and lawn and garden equipment. Meanwhile, Tata Group’s venture Agratas is also expected to enter the market around the same timeframe with its Gujarat-based facility.
Amara Raja has earmarked an investment of ₹10,000 crore through 2032 to build its lithium-ion cell and battery pack manufacturing capabilities. While the initial planned capacity stands at 16 GWh, the company sees potential for expansion driven by strong demand, although challenges around raw material availability and technology access remain.
The announcements follow a recent milestone where Amara Raja achieved a cumulative deployment of 1 GWh of lithium energy storage across 50,000 telecom sites nationwide. In a strategic shift, the company has also revised its capacity allocation, moving from a mobility-focused plan to an equal split between mobility and energy storage solutions (ESS).
