Hyderabad: Amara Raja Advanced Cell Technologies (ARACT) commissioned its customer qualification plant (CQP) at its upcoming Giga corridor at Divitipally in Mahabubnagar district of Telangana, advancing India’s lithium-ion battery manufacturing ambitions and setting the stage for commercial cell production next year.The facility was inaugurated by Telangana chief minister A Revanth Reddy. Built with an investment of about ₹500 crore, the CQP is part of Amara Raja’s wider ₹9,500 crore, 16 GWh gigafactory programme and the company’s Phase 1 investment of more than ₹1,500 crore in the state.With an initial capacity of 60 MWh and more than 100 employees, the plant will produce lithium-ion cells in cylindrical and prismatic formats across multiple chemistries.The cells will be supplied from Aug 2026 to original equipment manufacturer (OEM) customers for qualification, testing and approval before high-volume production.The CQP will bridge the gap between laboratory research and commercial manufacturing, enabling validation of processes before scaling to Giga 1, Amara Raja’s first 2 GWh commercial cell facility that is scheduled to commence operations in June-July 2027.Pointing out that Telangana Rising is unstoppable and the future of mobility and clean energy will be shaped by nations that build world-class manufacturing capabilities, CM Revanth Reddy said Telangana is determined to lead this transformation by creating an ecosystem where innovation, technology, industry and talent come together.“Amara Raja’s CQP represents a significant step in building India’s battery manufacturing value chain and reinforces Telangana’s position at the forefront of the country’s clean energy revolution,” Reddy said.He said the state has been adopting best practices of earlier govts to avoid policy paralysis and ensure continuity for investors.The CM said Telangana currently contributes about 5% to national GDP, which he termed as inadequate, and set targets of doubling that share to 10% by becoming a $1-trillion economy by 2034 and a $3-trillion economy by 2047.Lauding Amara Raja for competing with China in the clean mobility sector, the CM said 700 people are currently working at the Amara Raja unit in Divitipally, of which 400 are women.He also urged Amara Raja to ensure that farmers who gave their lands for the company’s Giga corridor project are provided jobs in the new EV cell manufacturing unit.Jayadev Galla, co-founder and chairman, Amara Raja, said the commissioning of the plant marks an important step in India’s journey towards realising the vision of building a self-reliant battery ecosystem.“As the world reconfigures energy supply chains around resilience, security and advanced manufacturing, India’s ability to develop, validate and manufacture advanced battery technologies will shape its role in the global energy transition. Our CQP is a significant step towards creating these capabilities and laying the foundation for a trusted, world-class energy ecosystem.”Speaking to mediapersons on the sidelines of the inaugural, Galla said the MoU signed with the Telangana govt commits Rs 9,500 crore of investment, 4,000 jobs and 16 GWh capacity. Further expansion, he said, will depend on market demand and state support.Galla said the company is front-loading research and qualification investments to avoid costly gigafactory-scale mistakes seen in Europe, while remaining committed to both EV and internal-combustion businesses. He said localisation remains an economic and policy challenge for cells.Vikram Gourineni, executive director, Amara Raja Energy & Mobility (AREM), said the company has acquired 262 acres of land from the govt and expanded it through the private acquisition route that gives it infrastructure headroom of more than 30 GWh, though its commitment to Telangana govt is only at 16 GWh.Phase one includes battery-pack assembly, a flexible cell qualification plant, a 6 GWh gigafactory beginning with 2 GWh, and a dedicated 10 GWh energy-storage systems facility. He said initial production will use NMC chemistry for specific two-wheeler applications, while future expansion will be largely LFP, with flexibility for sodium and other chemistries.
