Amara Raja Advanced Cell Technologies (ARACT) has entered into a Memorandum of Understanding (MoU) with Piaggio Vehicles Private Limited to enhance electric vehicle (EV) technology in India. The agreement, announced on August 10, focuses on the development and supply of lithium-ion cells, battery packs, and chargers specifically for Piaggio’s electric three-wheelers and future two-wheelers.

Under the terms of the MoU, Amara Raja will manufacture Lithium Iron Phosphate (LFP) lithium-ion cells and chargers at its Gigafactory located in Divitipally, Telangana. This initiative aligns with Amara Raja’s strategy to bolster local production capabilities and support the growth of the electric mobility sector in India.

The partnership builds on a prior collaboration that began in 2020, during which Amara Raja supplied 50,000 NMC lithium-ion battery packs and EV chargers to Piaggio. These products have collectively achieved over 120 crore kilometers of usage.

In addition to its collaboration with Piaggio, Amara Raja is working with Gotion-InoBat-Batteries (GIB) to adapt global LFP technology for Indian conditions and with Jiangsu Highstar Battery Manufacturing Co. to integrate NMC technology.

The MoU signing coincided with the groundbreaking of Amara Raja’s Customer Qualification Plant (CQP) and the laying of the foundation stone for its Gigacorridor in Divitipally. The CQP is expected to be operational by the first quarter of the next financial year, facilitating the testing and validation of various cell types.

The Gigacorridor, which spans 260 acres, represents a significant infrastructure investment of ₹9,500 crore. It will include an advanced cell manufacturing Gigafactory and a battery pack facility, aiming to enhance production capacity to 16 GWh by 2031. This project is anticipated to create substantial local employment opportunities and will cater to both domestic and international markets, thereby strengthening India’s position in the global EV supply chain.

Piaggio India has introduced a battery subscription model for its electric three-wheelers, viewing this collaboration as a means to solidify its presence in the Indian EV market. “Piaggio has always been at the forefront of innovation that benefits and empowers our customers. Together with Amara Raja, we are confident of advancing our successful EV journey as India adapts to electric mobility,” stated Piaggio’s Chairperson and MD, Diego Graffi.

The partnership between Amara Raja and Piaggio India aims to enhance the development of electric vehicles (EVs) in India by localizing the production of Lithium Iron Phosphate (LFP) lithium-ion cells and chargers at Amara Raja’s Gigafactory. This initiative not only reduces reliance on imports but also ensures a steady supply of essential components for Piaggio’s electric three-wheelers and future two-wheelers, aligning with India’s goals for sustainable transportation.

Additionally, the collaboration is expected to create significant local employment opportunities and foster a skilled workforce in the EV sector. By adapting global battery technologies to Indian conditions and establishing infrastructure for testing and validation, the partnership will support innovation and improve the overall quality of EVs in the market, ultimately contributing to the growth of the electric mobility ecosystem in India.