TATA Group’s battery arm Agratas is building its first pilot line of lithium iron phosphate (LFP) cells at Sanand, Gujarat, using proprietary technology, a strategic pivot forced by China’s export restrictions, Bloomberg reported. 

Commercial production of nickel manganese cobalt (NMC) cells, supported by licensed Japanese technology, is scheduled for early 2027, with output aimed at vehicles such as Jaguar Land Rover’s Range Rover Electric.

TATA Group’s Agratas Energy Storage Solutions is preparing to manufacture lithium cells using its own technology for the first time. The company is setting up a pilot production line at its upcoming Sanand factory in Gujarat to produce LFP cells.

This decision follows Beijing’s tightening restrictions on the export of critical battery manufacturing know-how, which made partnerships with Chinese firms virtually impossible. Executives concluded that licensing agreements with Chinese companies were no longer viable, prompting a shift toward self-reliance.

A team of engineers from India, South Korea and China has been assembled to refine manufacturing processes and validate the initial batch of LFP cells at the pilot line. This validation stage is critical before commercial production can begin. Developing LFP technology in-house will inevitably add costs and extend timelines compared with licensing established platforms, but it ensures domestic control over a vital part of the electric vehicle supply chain.

The Sanand facility will manufacture both LFP and NMC cell types. While LFP development is being pursued internally, Agratas has secured mature technology for NMC cells through a licensing agreement with Japan’s Automotive Energy Supply Corp., part of Envision Energy International.

This partnership allows Agratas to bypass early development stages and move more quickly toward commercial-scale production of NMC cells, which are expected to begin rolling out by early 2027.

LFP batteries are cheaper and safer, though they typically offer less driving range compared with NMC cells. Their cost-effectiveness makes them particularly suitable for grid-scale energy storage projects, which are essential as India expands renewable energy capacity.

Agratas is also investing heavily in research and development, with over $400 million committed to a new Bengaluru research centre focused on advanced battery chemistries, including LFP.

The company’s global ambitions are evident. Agratas is preparing operations in Somerset, England, with production expected to start around mid-2025, primarily to supply Jaguar Land Rover for its upcoming Range Rover Electric SUV. The Sanand plant will complement this by serving both domestic and international markets, reinforcing TATA Group’s strategy to build a robust local battery manufacturing ecosystem.

Other Indian firms such as Reliance Industries and JSW Group have faced similar challenges in accessing Chinese technology, underscoring the strategic importance of Agratas’s pivot. By developing its own LFP technology, TATA is positioning itself as a leader in India’s battery self-sufficiency drive, even though the path involves higher costs and longer development cycles.

Agencies