Amara Raja inks pact with Telangana for Rs.9,500 crore project

The Tirupati-headquartered group proposes to set a Lithium Cell Giga Factory with ultimate capacity of 16 GWh and a battery pack assembly unit up to 5 GWh.

Hyderabad: Amplifying the business friendly policies of Telangana, Amara Raja Batteries Limited, one of India’s leading industrial and automotive battery majors, on Friday announced plans to invest Rs.9,500 crore in Mahabubnagar district over 10 years. It will set up a Lithium Cell Gigafactory with an ultimate capacity up to 16 Giga Watt hours (GWh) and a Battery Pack Assembly Unit up to 5 GWh.

The unit will come up at Divitipalli and create employment for about 4,500 people in phases. This is the Tirupati-based Amara Raja’s as well as India’s largest investment in the segment. With Amara Raja’s proposed plant, Telangana will be one of the few in the world to host a lithium cell Gigafactory, IT and Industries Minister KT Rama Rao said at the MoU signing ceremony here.
“Yet another historic win for Telangana, Amara Raja to set up India’s largest Lithium Ion Cell Manufacturing facility till date with an investment of Rs.9,500 crore, further reinforcing Telangana’s position as an ideal destination for EV and Advanced Cell Chemistry (ACC) Manufacturing,” he said.

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“We have been making several efforts on the Electric Vehicles and Energy Storage Solutions front. Amara Raja’s mammoth investment is the biggest investment that Telangana has been able to attract in the segment. I am delighted that a home grown company, which has been operating in Hyderabad for many years, is making this investment. We are confident that this investment will act as an anchor and spur further investments in EV and advanced cell chemistry ecosystems in the Divitipalli and Zaheerabad clusters, create manufacturing hubs and create many direct and indirect jobs,” he said.

Telangana is working on providing basic infrastructure like water, electricity, social infrastructure, improving quality of living, increasing the quality of living, and creating a talented workforce. That is enabling the State in attracting large scale investments in new and evolving areas such as sustainable mobility. With its progressive EV adoption policy and ability to offer 24/7 power, the State aims to be the most electrified State in mobility in India, Rama Rao said.

He lauded the efforts of Amara Raja to bring high-end technology to Tier 2 locations and train the local youth in that. This will benefit the local youth and consequently strengthen the local communities. Hyderabad now is the go-to destination for technology and life sciences and it is set to repeat the same with the EV segment, he said.

Amara Raja has been working on lithium ion cell chemistries that are suited for the Indian subcontinent conditions. The company surveyed policies of multiple States but the company found a synergy in Telangana’s Electric Vehicle and Energy Storage Policy for its energy and mobility strategy it announced last year. It finalised Telangana for its business friendly policies and competitive incentive package after a long and deep analysis of the other States, Amara Raja Batteries Chairman and Managing Director Jayadev Galla said.

“I would like to congratulate the Minister for bringing out a robust EV policy, because of which the EV sector in the State is gaining steam and many companies have invested in the State or are looking to invest in the State,” he said.

The company has incorporated a new energy subsidiary named Amara Raja Advanced Cell Technologies. This will encompass lithium cells and battery packs for the e-mobility markets, he added.

Key points: 

• Amara Raja Batteries Limited to invest Rs.9,500 crore in Telangana

• Will set up factory in Divitipalli of Mahbubnagar

• Lithium ion cell capacity will be 16 GWh

• Battery Pack Assembly Unit to have 5 GWh capacity

• To provide employment to 4,500 people

• Company will train local youth
• Investment is largest for Amara Raja as well as India in the EV segment