Amara Raja Energy & Mobility announced that its wholly owned subsidiary Amara Raja Advanced Cell Technologies (ARACT) will be signing a memorandum of understanding (MoU) with Ather Energy.

Ather Energy is an electric vehicle manufacturer. The company has also established a public charging network, called the Ather Grid, which is designed and built in India. Ather has installed 1900 fast chargers across 200 cities as of March 2024.

As part of the MoU, Amara Raja will collaborate with Ather to develop and supply NMC (nickel manganese cobalt) and LFP (lithium iron phosphate) Lithium-Ion (Li-ion) and other advanced chemistry cells, produced locally at their upcoming gigafactory in Divitipally, Telangana.

Amara Raja recently entered into an agreement with Gotion-InoBat-Batteries (GIB) that will facilitate it to localise current global LFP technology for making Lithium-Ion cells specifically suited for Indian conditions. The company also has an agreement with Jiangsu Highstar Battery Manufacturing Co. for NMC technology.

With India focused on clean and green energy, the automotive industry is witnessing a big transition towards electric vehicles (EVs), particularly in the two-wheeler segment. Industry projections point towards EV 2W penetration to reach 40% by 2030.