Amara Raja intends to invest Rs 9500 crore in Telangana

The proposed investment will be over ten years after necessary approvals

Industrial and automotive battery major Amara Raja group has announced its intention to invest Rs 9500 crore in Telangana.

On Friday, the Andhra Pradesh-based Amara Raja Batteries Limited (ARBL) signed a memorandum of understanding (MoU) with Telangana government to set up state-of-the-art research and manufacturing facilities for lithium-ion batteries in Mahbubnagar district.

The proposed facility will have a Lithium Cell Gigafactory with an ultimate capacity of up to 16 GWh and a Battery Pack Assembly unit up to 5 GWh.

Jayadev Galla, Chairman & Managing Director, Amara Raja Batteries, and the TDP Guntur MP, made the announcement in the presence of Telangana IT and industries minister K T Rama Rao.

The proposed investment of Rs 9500 crore will be over the next 10 years, after necessary approvals.

The Andhra Pradesh Pollution Control Board had, in 2021, issued closure notices to the Amara Raja battery production units near Tirupati. While the opposition TDP accused the YSRCP of political witch-hunt, the Jaganmohan Reddy government maintained that the notices were based on detection of lead contamination and environmental pollution in the surroundings.

The AP high court reportedly suspended the notices later while setting certain conditions for battery production operations. Reports emerged thereafter that the company was considering neighbouring states for its future projects.

Amara Raja Batteries now said that it chose Telangana state to house the Amara Raja Giga Corridor, “as the latest (move) in its pivot to becoming an 'Energy & Mobility’ enterprise.”

"This strategic partnership with Telangana government is a giant leap for Amara Raja and will bring in the impetus for innovations in sustainable technologies for the whole region, in addition to generating employment opportunities. We have had a long association with the state and are excited to finally have the opportunity to establish an industrial base here,” Galla said.

"Telangana has been a frontrunner in adopting sustainability, and it is a proud moment for the state to welcome the country’s largest ever investment in the lithium-ion cell manufacturing sector. Our aim is to become the most electrified state in India, and having a Gigafactory in Telangana further strengthens our aspiration to become an EV manufacturing hub and spearhead the EV revolution in India,"Rama Rao said.

The initial facilities would include a first-of-its kind advanced energy research and innovation center in Hyderabad, dubbed the Amara Raja E-hub. This facility will be equipped with advanced laboratories and testing infrastructure for material research, prototyping, product life cycle analysis and Proof of Concept demonstration. This will cater to the development needs of the Amara Raja as well as to provide a range of facilities open to other players in the energy and mobility ecosystem, the company said.

As part of its journey towards Giga scale manufacturing of advanced cell technology products, Amara Raja said it would be establishing a commercial scale pilot plant and the first giga scale cell production facility. Towards this, the company has announced the incorporation of a subsidiary named Amara Raja Advanced Cell Technologies Private Limited.

Amara Raja has been working on Li-ion cell chemistries specifically suited for Indian subcontinent conditions, and already supplies lithium battery packs and chargers to some 2 and 3-Wheeler OEMs, a statement said.