Amara Raja to invest in Li-ion batteries: New plant, possible partnership explained

A new Li-ion battery manufacturing firm could be quite a possibility whereas whether the company will be alone in these efforts

By:Updated: Jun 16, 2021 12:56 PM

One of the country’s leading battery maker, Amara Raja, announced that it has decided to invest in Li-ion batteries. The company issued a statement a couple of days ago however the details like investment, new plant aren’t yet made available for public consumption. Express Drives spoke to a source who is close to the development. Whether a new Li-ion battery plant will be set up in India is a bone of contention. A battery factory entails a huge investment, especially if it involves rare materials like Lithium. Moreover, it also requires material import. While most of raw materials will likely be from India, there will be foreign components as well. Once the battery-making gains scale in India, the source said, a higher number of components will be localised. At present, it is being claimed that there is no specific investment in the entire scheme of things that has been approved.

The source maintains that almost $1 billion will be needed to set up a world-class Li-ion battery plant in India. This investment needs to be done over a period of five to 10 years. It is likely the Amara Raja will make a public announcement of these plans soon. While going solo is a huge risk, the company might also rope in a local partner. The latter can bring in investments as well as synergies of operation. The battery technology could also be something that the partner could invest in. Amara Raja being a big name in the battery field, the company could also do all of this alone.

If you think that the company has given up on lead-acid batteries, then you are mistaken. In fact, the company feels that there is a strong long-term potential for lead-acid batteries. The company is of the opinion that “The vital role played by lead-acid technology across a variety of applications provide significant growth opportunity in both the domestic and international markets.” The Board, it is claimed, has also agreed that the company will continue to invest, and expand the lead-acid battery business in which it is a significant player in many segments. The new strategy, aimed at tapping opportunities in the home inverter, motive power and unorganised segments, is expected to further consolidate the company’s existing strengths and market share.

 

 

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