Amara Raja to set up Rs.9,500-cr lithium ion battery making unit in Telangana

HYDERABAD: "Our goal is to become India's most electrified state, and having a Gigafactory in Telangana strengthens our aspiration to become an EV manufacturing hub and spearhead the EV revolution in India," said K T Rama Rao, Minister for Industries and Commerce, on Friday.

Amara Raja Batteries Limited (ARBL), one of India's leading industrial and automotive battery manufacturers, signed a memorandum of understanding (MoU) with the Government of Telangana on Friday to establish state-of-the-art lithium-ion battery research and manufacturing facilities in Mahbubnagar district, Telangana.

Telangana had been a leader in adopting sustainability, and it was a proud moment for the state to welcome the country's largest-ever investment in the lithium-ion cell manufacturing industry, KTR said while addressing the gathering after signing the MoU of Rs 9,500-cr investment with Amara Raja.

"We have been making several efforts on the Environmental and Social Standards(ESS) front," he said, "but this has been the largest investment the Telangana government has been able to attract into the state of Telangana." And I am delighted that this move was being made by a Hyderabad-based company.

KTR congratulated Jayadev Galla, MP and MD of Amara Raja Group, and the entire Amara Raja team on their significant investment in Telangana.

The minister stated that Amara Raja's establishment of India's largest lithium-ion cell manufacturing facility with an investment of Rs. 9,500 crore, further solidifying Telangana's position as an ideal location for EV and Advanced Cell Chemistry (ACC) manufacturing, was yet another historic win for Telangana.

He said, "This is a crucial step towards achieving sustainable mobility and self-sufficiency in India. Telangana is now one of the few regions in the world to host a Lithium ion Giga factory. The factory, which will be located in Divitipalli, Mahbubnagar, will employ 4,500 people."

The company planned to invest more than Rs 9,500 crores over the next 10 years, after necessary permits, said Jayadev Galla.

The initial facilities would include the Amara Raja E-hub, a first-of-its-kind advanced energy research and innovation centre in Hyderabad. This facility will have cutting-edge laboratories and testing infrastructure for material research, prototyping, product life cycle analysis, and Proof of Concept demonstrations. 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.

Jayadev Galla, said, "This strategic partnership with the Government of Telangana 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."

Vikramadithya Gourineni, Executive Director, New Energy Business, said "This latest step is in line with the 'Energy & Mobility' roadmap that we laid out last year. Our ambition is to develop a robust Indian ecosystem with R&D, incubation, testing, and manufacturing – a Giga Corridor for emerging technologies in Energy and Mobility."