Tata Adopts Proprietary Technology To Manufacture Lithium Cells

Tata Group's battery manufacturing arm, Agratas Energy Storage Solutions Pvt. Ltd., is preparing to develop lithium iron phosphate (LFP) battery cells using its own technology, marking a strategic shift aimed at reducing dependence on foreign technology. The move comes as tighter export restrictions imposed by China have made it increasingly difficult for Indian companies to access critical battery manufacturing know-how needed for local cell production.

According to people familiar with the development, Agratas is setting up a pilot production line for LFP cells at its upcoming battery manufacturing facility in Sanand, Gujarat. The pilot line will be used to refine manufacturing processes and validate the initial batch of battery cells before commercial-scale production begins. A team comprising Indian, South Korean and Chinese engineers is expected to work on optimising the production process during the testing phase.

The company reportedly decided to pursue in-house technology after concluding that the prospects of securing a technology licensing agreement with a Chinese company had become highly unlikely due to Beijing's stricter controls on the export of advanced battery manufacturing technology. Similar challenges have reportedly affected other Indian companies, including Reliance Industries and the JSW Group, as they seek to establish domestic battery cell production capabilities. While the shift is expected to increase development costs and extend production timelines, it is seen as an important step toward long-term technological self-reliance.

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Agratas is simultaneously advancing production of nickel manganese cobalt (NMC) battery cells through a licensing agreement with Japan's Automotive Energy Supply Corp., a subsidiary of Hong Kong-based Envision Energy International Ltd. This partnership has enabled the company to bypass early-stage development for NMC technology, an advantage it does not have with LFP batteries. Both LFP and NMC cells are expected to be manufactured at the Sanand facility, supporting Tata Group's broader strategy of building a domestic battery ecosystem for electric mobility and energy storage.

LFP batteries are generally less expensive than NMC batteries and are widely used in stationary energy storage applications because of their durability and lower cost. In addition to its manufacturing plans, Agratas is investing more than USD 400 million in a research and development centre in Bengaluru focused on LFP and lithium manganese iron phosphate technologies. The Sanand facility is expected to begin producing NMC battery cells by early 2027, while the company's factory in Somerset, England, is scheduled to commence production around the middle of next year, initially supplying battery cells for Jaguar Land Rover's upcoming Range Rover Electric SUV.

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