Amara Raja Batteries Limited (ARBL), one of India’s leading industrial and automotive battery manufacturers, has signed a memorandum of understanding (MoU) with the Telangana government to set up state-of-art research and manufacturing facilities for lithium-ion battery-making.
The new Li-ion battery gigafactory will come up in the Mahbubnagar district of the state, the company said in a release on Friday.
Over the next 10 years, Amara Raja Batteries will invest over Rs 9,500 crore for the same, subject to necessary approvals.
The new facility will have a Lithium Cell Gigafactory with an ultimate capacity of up to 16 GWh and a battery pack assembly unit of up to 5 GWh.
This is also the largest-ever investment in the state of Telangana in the lithium-ion cell manufacturing sector.
On November 3, Amara Raja announced the incorporation of a subsidiary named Amara Raja Advanced Cell Technologies Pvt Ltd, towards setting up the new unit in Telangana. 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 many 2 and 3-Wheeler OEMs
The management believes that the strategic partnership is a giant leap for the company and will bring the impetus for innovations in sustainable technologies for the whole region, in addition to generating employment opportunities.
Shares of Amara Raja Batteries ended 0.8 percent higher at Rs 651.05.
