Amara Raja Expands Lithium Portfolio with Telecom and Data Centre Growth, Targets Global Presence in 80 Countries

Amara Raja Energy & Mobility Accelerates Lithium-Ion Push

Amara Raja Energy & Mobility is intensifying its focus on lithium-ion batteries, particularly in the fast-growing telecom and data centre segments, as the company targets exports to 80 countries. The integrated energy storage solutions provider is preparing a cell pilot at its Telangana facility, which is expected to begin production in June.

The company is also working with customers to transition from lead-acid to lithium-based energy storage. This shift is driven by the growing demand for lithium-ion batteries in telecom and data centre applications. Amara Raja has already seen significant success in the telecom sector, with a cumulative lithium installation of over one gigawatt hour, accounting for a 35-40 percent market share.

The company projects aggressive growth in telecom, with an additional 1.5 GWh of lithium deployment expected this year alone. Over the next two to three years, Amara Raja expects to see significant telecom rollouts, followed by replacement cycles and a focus on stationary storage applications such as UPS, utility-scale storage, and other emerging use cases.

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Amara Raja sees significant opportunities in energy storage systems (ESS) and data centres. The company believes that ESS could become one of the largest segments after electric vehicles. For data centres, there are two opportunities: traditional UPS backup systems and renewable-backed energy storage for green data centres.

The company already has a strong presence in data centres through its lead-acid UPS business and is now working to transition those customers to lithium. Amara Raja is set to begin cell production at its pilot facility in June, with a capacity of 60 to 100 MWh.

The company's first giga facility, with 2 GWh capacity, is on track to be operational by the end of 2027. This will primarily serve the mobility market, with ESS and stationary storage following the year after. Despite geopolitical disruptions, Amara Raja's investment plan remains intact, with an investment of approximately Rs 10,000 crore in Telangana to set up lithium cells and packs, as well as energy storage systems.

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The company is navigating export restrictions from China on materials and equipment by diversifying sourcing and exploring suppliers outside China. However, non-China sourcing often comes at a premium. Amara Raja's global exports continue to grow steadily, with commercial exports to the US currently in lead-acid, and a goal to expand to 80+ countries.

While mobility will remain a key contributor, ESS is expected to emerge as a major growth driver. The company is taking an opportunistic approach, targeting markets where China doesn't have a dominant advantage or faces restrictions.