Amara Raja launches gigafactory in Telangana to produce lithium ion battery

Amara Raja Batteries Limited on Saturday launched the first Gigafactory in Telangana. Considered to be one of India's largest gigafactory, it will manufacture lithium-ion batteries, with a planned investment of Rs 9,500 crore over the next 10 years.

According to media reports, the work was commenced following a ceremony at Divitipalli in Mahabubnagar district in the presence of state IT and industries minister K T Rama Rao, who also laid the foundation stone. The ceremony on Saturday marked the beginning of Amara Raja Giga Corridor which plans to manufacture lithium cell and battery packs with a capacity of up to 16 Gigawatt hours (GWh) and up to 5 GWh respectively.

K T Rama Rao called it a big step forward in electrifying Telangana's ambitions to be a hub for electric vehicles and sustainable mobility. He further added that this is the largest investment in India in this sector.

Back in December 2022, the state government signed a Memorandum of Understanding (MoU) with Amara Raja Advanced Cell Technologies Pvt. Ltd. (ARACT), a wholly owned subsidiary of ARBL. During the signing of the MoU, the company announced it would cost Rs 9,500 crore in a phased manner over the course of the next ten years.

According to reports, during the first phase, the company would invest between Rs 1,500 crore to Rs 2,000 crore. The funds will be arranged through the company's internal sources and it is expected to be completed within two to three years. 

Ramachandra N. Galla, founder, Amara Raja Group, commented on the same and said, "Amara Raja's core purpose has always been to build institutions that provide better opportunities to more and more people and this beginning today will transform this region in the years to come."

This new facility in Telangana by Amara Raja plans to create employment opportunities for nearly 4,500 people and a similar number of indirect jobs. It is also expected to contribute significantly to the socio-economic development of the region. 

According to reports, the initial facilities will also include advanced energy research and innovation center, which will be the first of its kind and it will be equipped with advanced laboratories and testing infrastructure for material research, prototyping, product life cycle analysis, and Proof of Concept demonstration. 

(With inputs from agencies)