Tata Group’s battery business is moving towards greater technology independence as tighter Chinese restrictions on critical manufacturing know-how make technology partnerships harder to secure. Agratas Energy Storage Solutions Pvt. is developing its own technology to manufacture lithium iron phosphate (LFP) battery cells for the first time.
The company is setting up a pilot production line for LFP cells at its upcoming battery plant in Sanand, Gujarat. People familiar with the matter said the pilot line will be used to refine manufacturing processes and validate the first batch of cells before commercial production begins.
Indian, South Korean and Chinese engineers are expected to work together on the pilot project. The shift follows an internal assessment that the chances of securing a technology deal with a Chinese company are now close to nil due to Beijing’s tighter controls on exports of critical manufacturing technology.
Several Indian companies, including Reliance Industries Ltd. and JSW Group, are also facing challenges in accessing technology needed for local cell production as existing licensing arrangements face difficulties.
Developing LFP technology internally is expected to increase costs and delay Agratas’ production ramp-up. The company’s NMC cell programme, however, has benefited from licensed technology from Japan’s Automotive Energy Supply Corp., a unit of Hong Kong-based Envision Energy International Ltd. This partnership allowed Agratas to avoid the early development phase for NMC cells.
An Agratas spokesperson did not comment on the planned LFP pilot line or the technology development.
Agratas plans to produce both LFP and nickel manganese cobalt (NMC) cells at its Sanand facility. LFP cells are generally cheaper but offer less range than NMC batteries. They are also better suited for stationary storage and could help Agratas enter India’s growing grid-scale battery energy storage market.
The company is investing more than $400 million in a Bengaluru R&D centre focused on LFP and lithium manganese iron phosphate technologies.
The Sanand facility is expected to begin NMC cell production by early 2027, while Agratas’ Somerset facility in England is scheduled to start around mid-2027. Initial output from both facilities will supply Jaguar Land Rover for its upcoming Range Rover Electric SUV.
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