Amara Raja Advanced Cell Technologies Private Limited (ARACT), a subsidiary of Amara Raja Energy & Mobility Limited (ARE&M), is all set to collaborate with Ather Energy. The partnership aims to develop and supply lithium-ion cells for two-wheeler battery packs.

What Happened: The partnership was announced on Thursday, 1st August 2024. As per the agreement, Amara Raja will work with Ather Energy to develop and supply NMC (Nickel Manganese Cobalt) and LFP (Lithium Iron Phosphate) Lithium-Ion cells. These cells will be manufactured at Amara Raja’s upcoming Gigafactory in Divitipally, Telangana.

Amara Raja has recently inked an agreement with Gotion-InoBat-Batteries (GIB) to localise LFP technology for Lithium-Ion cells, specifically designed for Indian conditions. The company also has an agreement with Jiangsu Highstar Battery Manufacturing Co. for NMC technology.

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Industry estimates predict that EV 2W penetration in India could reach 40% by 2030. Both Amara Raja and Ather Energy are poised to leverage this burgeoning market potential. Ather Energy, with two manufacturing facilities in Hosur, Tamil Nadu, recently announced the establishment of another plant in Maharashtra.

“Our focus has always been on designing and building products from scratch in India, with most of our components, aside from cells, sourced domestically. Now, we’re taking a significant step forward by promoting homegrown cell technology,” said Tarun Mehta, co-founder & CEO at Ather Energy.

Price Action: Shares of Amara Raja were up 2.10% to trade at ₹1,660.40 on Thursday morning.

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