Amara Raja Energy & Mobility Limited seeks PLI benefits but is ready for independent journey

Amara Raja Energy & Mobility Limited, a domestic battery manufacturer, does not depend on government support for its plans for the EV business, even though the company has applied for benefits under the production-linked incentive (PLI) scheme for producing advanced chemistry cells for battery electric vehicles (BEVs), citing a senior manager Moneycontrol reported.

In a recent interview done by Moneycontrol, Executive Director Harshavardhana Gourineni stated that the business is proceeding with its plans to invest in the construction of a gigafactory in Telangana.

The term "gigafactory," made popular by US electric vehicle manufacturer Tesla, describes a facility that specialises in producing green technology products.

"We submitted a proposal for the PLI program, but we haven't yet received certification. On that, we'll hear back (from the government).” However, Gourineni noted in the conversation that their business model and prospects are not based on receiving these incentives.

Amara Raja Advanced Cell Technologies (ARACT), a step-down subsidiary established in 2021, is tasked with producing lithium-ion batteries and battery packs for electric vehicles. The Hyderabad-based business in December 2022 stated that it would be investing Rs 9,500 crore to build a 16 GWh lithium-ion cell production and battery pack assembly facility in Telangana.

“To bring in the appropriate cell technology, tropicalise it for the Indian environment, and provide solutions to our renowned partners, we are moving forward with our investments gradually. But it will take time to move cell production from a pilot program to a commercial scale,” Gourieneni said.

The first of the plan i.e. establishing a 5 GWh battery pack assembly unit will be started soon. Announcing the update Gourieneni stated, "We are addressing the EV market in terms of phase. We intend to service all of the OEMs (original equipment manufacturers) in India through our second approach arena, gigafactory since we have very strong, continuous ties with them.”

Lately, ARACT declared that it has signed a technical licensing agreement with Gotion-InoBat Batteries (GIB) EnergyX Slovakia to get the technology and license needed to produce lithium fluorophosphate for use in lithium-ion batteries.