Tata Group's battery venture Agratas Energy Storage Solutions Pvt Ltd has disclosed its technology partnership with China's Envision Group-owned battery maker AESC Apollo Holding Ltd for the first time in its annual financial filings. According to reports from Mint, the company entered into an intellectual property agreement with the Chinese firm, which manufactures both NMC (nickel manganese cobalt) and LFP (lithium iron phosphate) batteries. Agratas stated it is investing in R&D facilities and personnel to enable technology absorption and build internal capabilities in this nascent space.
While Agratas characterizes AESC as a technology partner, the Chinese-owned company referred to their arrangement as a joint venture in a filing dated 12 February with the UK's Companies House. As reported by Mint, AESC stated the joint venture designs, develops and manufactures high-quality, high-performance, sustainable battery solutions for multiple applications. Agratas India purchased sample cells from AESC's Chinese subsidiary, AESC Jiangsu Co Ltd, to aid its own battery development, with its UK entity paying approximately ₹40 million pounds for asset purchases from AESC.
The partnership provides Agratas access to both battery chemistries with distinct advantages. According to Mint, LFP batteries are 20-30% cheaper and more stable than NMC batteries, while NMC batteries offer higher performance and are more diversified, with Japan and South Korea also having access to the technology. AESC Apollo Holding, the entity with the stake in Agratas, provides technology-related services to companies in the lithium-ion battery industry and operates a 15 GWh lithium-ion gigafactory in Sunderland, UK.
Agratas is building a 40 GWh plant in the UK and a 20 GWh facility in India for lithium-ion batteries to be used in both battery storage systems and electric vehicles. As reported by Mint, the company has signed a ₹5,000 crore deal with Tata group company Jaguar Land Rover for the supply of EV batteries for seven years starting in FY27. However, The Guardian reported in June that Agratas faces a potential delay in its gigafactory construction, which could push the timeline for commercialization to 2028 from the earlier-slated 2027.
The disclosure comes amid government restrictions on Chinese companies transferring technology to overseas firms, which have complicated bids of Indian companies such as JSW, which has put its 50 GWh cell plant on hold. According to Mint, experts view such agreements as pragmatic responses by companies seeking access to technology and finding their place in the battery value chain. Vinay Piparsania from Millenstrat Research and Advisory noted that partnering with established global technology leaders allows Indian companies to immediately enter the technology race and accelerate their own local development.
