Amara Raja Batteries on Friday said it intends to invest Rs 9,500 crore in the next 10 years in Telangana. The industrial and automotive battery manufacturer said it has signed a pact with the Telangana government to set up research and manufacturing facilities for lithium-ion battery-making in the state.
In a regulatory filing on Friday, Amara Raja Batteries on Friday said it “signed a memorandum of understanding (MoU) with the Telangana government to set up state-of-the-art research and manufacturing facilities for lithium-ion battery-making in Mahbubnagar district, Telangana. Over the next 10 years, the company intends to invest over Rs 9500 crore, after necessary approvals".
The initial facilities would include an energy research and innovation center in Hyderabad, dubbed the Amara Raja E-hub. It will be equipped with advanced laboratories and testing infrastructure for material research, prototyping, product life cycle analysis and proof of concept demonstration, the company said.
“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," the filing added.
Amara Raja Batteries Chairman & Managing Director Jayadev Galla said the strategic partnership with the Telangana government would 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," he added.
The company also said that as part of its journey towards Giga scale manufacturing of advanced cell technology products, Amara Raja would be establishing a commercial scale pilot plant and the first giga scale cell production facility.
Amara Raja said it has been working on Li-ion cell chemistries specifically suited for Indian subcontinent conditions, and already supplies lithium battery packs and chargers to some two and three-wheeler OEMs.
Telangana IT and Industries Minister K T Rama Rao said, “Telangana has been a frontrunner in adopting sustainability, and it is a proud moment for the state to welcome the country’s largest ever investment in the lithium-ion cell manufacturing sector. Our aim is to become the most electrified state in India, and having a Gigafactory in Telangana further strengthens our aspiration to become an EV manufacturing hub and spearhead the EV revolution in India."
Shares of Amara Raja Batteries on Friday rose Rs 7.40, or 1.15 per cent, to Rs 653.15 apiece on the BSE.
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