Amara Raja Energy & Mobility has indicated that bulk production of lithium-ion cells is expected to begin in 2027. As per The Economic Times report, the company plans to start with smaller volumes in 2026, producing at a megawatt-hour (MWh) scale and supplying cells to customers for testing and validation.
The first gigafactory, with a capacity of 2 GWh, is expected to anchor this transition to commercial-scale output. Initial supplies are likely to be directed towards electric 2-wheelers.
The company is following a step-by-step scale-up. Early production will remain limited as customers complete qualification processes, which are necessary before wider adoption.
Bulk production is expected to follow once these processes are completed. The approach shows the time required to stabilise manufacturing and align with customer requirements.
Amara Raja has committed ₹10,000 crore towards building its lithium-ion cell and battery pack operations through 2032. The current plan includes a total capacity of 16 GWh.
The company has indicated that capacity could be increased if demand conditions remain favourable. However, expansion will depend on access to raw materials and technology partnerships.
The company has revised its earlier plan by allocating capacity equally between mobility and energy storage systems (ESS). This marks a change from its earlier focus on electric vehicles.
It comes as demand for stationary storage grows. The company has already deployed around 1 GWh of lithium-based storage across about 50,000 telecom sites in India.
Alongside electric vehicles, Amara Raja is looking to supply cells to other segments such as power tools and lawn and garden equipment. This is for reducing dependence on a single market.
The initial phase of production is still expected to remain concentrated in the electric 2-wheeler segment.
Locally manufactured lithium-ion cells are expected to remain costlier than imports in the near term, with an estimated premium of at least 15%. The domestic supply chain for battery materials and components is still developing.
Industry estimates suggest that production needs to reach 8-10 GWh, along with a supporting ecosystem, for costs to become competitive.
As of April 22, 2026, 12:13 pm, Amara Raja Energy & Mobility Ltd share price was trading at ₹884.45, up 14.30% from the previous closing price.
The company’s manufacturing plan is linked to gradual scale-up, with costs and timelines dependent on supply chain development and production volumes.
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Published on: Apr 22, 2026, 1:07 PM IST
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