Ather Energy, one of the most popular electric 2-wheeler sellers, has signed a memorandum of understanding (MoU) with Amara Raja for the battery cells of their scooters, Rizta and 450 series. This new collaboration would lead to Amara Raja developing and supplying Nickel Manganese Cobalt (NMC) and Lithium Iron Phosphate (LFP) batteries and other advanced chemistry cells to Ather.
Ather's Plans
Ather has designed and manufactured its battery packs in-house until now, following the Government's rules to avail of the FAME scheme subsidies. It has recently expanded its production capability with two manufacturing facilities in Hosur, Tamil Nadu, and is now planning another plant in Maharashtra.
Tarun Mehta, co-founder and CEO of Ather Energy, commented, "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 are taking a significant step forward by promoting homegrown cell technology. This will help us optimise costs and enable us to source lithium-ion cells tailored to Ather's specific requirements, further enhancing our ability to innovate and scale efficiently. Our aim is to help the domestic industry grow significantly to support India's energy demand now and in the coming future."
Amara Raja Grows Li-ion Branch
This partnership will benefit Amara Raja as it aims to increase the variety in its portfolio and reduce reliance on the conventional lead-acid battery segment. While it has a strong reputation for its lead-acid batteries, it is now making strides in the lithium-ion and EV battery market. The Ather order gives it an opportunity to prove the reliability and performance of its new project.
Vikramaditya Gourineni, Executive Director, Amara Raja Energy & Mobility Ltd, was quoted saying, "We immensely respect Ather's contribution to electrify mobility in India and their unique approach to overall ecosystem development for sustainable personal mobility solutions. At Amara Raja, we have significantly progressed in our efforts to build world-class facilities to manufacture cell and battery packs customised for Indian conditions. Our recent collaboration with Gotion-InoBat will accelerate our efforts towards the same. We are proud to partner with Ather and together we will focus on building market relevant solutions in India's journey towards indigenisation of Electric Vehicle technologies."
How the Deal Impacts India's EV Industry
This collaboration between the two giants is an important step for India's EV industry. It could lead to the change in the industry that presently is dependent on imported batteries especially from China. WIth the localisation of lithium-ion cells, Amara Raja and Ather have targeted to reduce the reliance of the industry on imports and make India an integral part of the global EV supply chain.
To keep up with all the news in the automotive industry, click here.
