Agratas Energy Storage Solutions Pvt., Tata Group's battery unit, is developing its own technology for lithium iron phosphate (LFP) cells at its upcoming factory in Sanand, Gujarat. According to people familiar with the matter, the closely held company is building a pilot production line for LFP cells as China's tighter export restrictions spur the Indian conglomerate to seek self-sufficiency. A team of Indian, South Korean and Chinese engineers will work on refining manufacturing processes and validating the initial batch of LFP cells before commercial production begins.
The move represents a deliberate pivot for Agratas after executives assessed that technology deals with Chinese firms are close to nil given Beijing's stringent restrictions on exports of critical manufacturing know-how. As reported by people familiar with the matter, several Indian firms including Reliance Industries Ltd. and JSW Group are facing difficulties accessing technology needed to make cells locally as existing licensing deals falter. The company plans to manufacture both LFP and nickel manganese cobalt (NMC) cell types at the Sanand factory, which is at the center of Tata's plan to create a domestic battery-making ecosystem.
Agratas is investing more than $400 million in a research and development center in Bengaluru focused on LFP and lithium manganese iron phosphate battery technologies, according to Bloomberg reports. The India facility will begin producing NMC battery cells by early 2027, while the company's factory in Somerset, England, is scheduled to start production by around the middle of next year. Those facilities will initially supply cells to Tata Motors Passenger Vehicles Ltd.'s UK-based unit, Jaguar Land Rover, for its upcoming Range Rover Electric SUV.
LFP batteries are cheaper but typically offer less range than their NMC counterparts, making them better suited for stationary storage applications and helping Agratas tap the grid-scale battery energy storage market. As reported by people familiar with the matter, the change in strategy will add costs and time to the Tata unit's ramp-up of LFP cells, contrasting with its effort to mass produce NMC cells which has been helped by licensing mature technology from Japan's Automotive Energy Supply Corp. The company had previously been considered for a potential spin-off by Tata.
