Now Reading: Amara Raja may shift lithium-ion focus to energy storage cells
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Amara Raja may shift lithium-ion focus to energy storage cells
Amara Raja Energy & Mobility may prioritise energy storage system (ESS) cells over electric vehicle (EV) cells for its lithium-ion manufacturing plans, CFO Y Delli Babu told ET. The company had earlier…
The Story in Brief
Amara Raja Energy & Mobility may prioritise energy storage system (ESS) cells over electric vehicle (EV) cells for its lithium-ion manufacturing plans, CFO Y Delli Babu told ET. The company had earlier planned up to 16 GWh of cell capacity by FY30 with an investment of nearly Rs 9,000 crore, but the eventual capacity will depend on demand. Delli Babu said ESS demand could 'uptick our demand much faster.'
The company also faces a 15-20 per cent price disadvantage against Chinese imports due to China's deeper supply chain. India's lithium-ion manufacturing ecosystem is nascent, and efforts to localise the supply chain are still developing. Management said long-term localisation will help stabilise the industry and improve competitiveness.
The Indian Opinion
The narrative that India can rapidly replicate China's battery supply chain is optimistic but ignores a 15, 20% cost disadvantage and a nascent ecosystem. Equally, the pessimism that India will always be dependent overlooks long-term localisation efforts. The real test is whether cathode material production and the PLI scheme can shrink the price gap to single digits. If not, the 'Make in India' battery story remains a promise, not a reality.
Source: auto.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
