Amara Raja Energy & Mobility Ltd (ARE&M) has said that it will invest up to $5 million to set up a fully owned subsidiary in the United States. The money will be put into one or more parts through loans, equity, securities, or capital expenditures.
The company stated that the new entity is expected to be incorporated within the next three to six months.
Focus on Battery Distribution and Global Expansion
ARE&M says that the US subsidiary will focus on distributing batteries and other parts for the energy and mobility sectors. Setting up a local office in the US is meant to improve customer service and help the company grow globally.
The company also noted that the move will allow it to evaluate future localisation opportunities, including potential manufacturing or assembly operations in the US market.
Strong Growth in New Energy Business
ARE&M reported that revenue from its new energy business crossed INR 200 crore during the third quarter of FY2026. The growth was driven primarily by strong domestic demand for telecom battery packs. During the quarter, the company supplied more than 250 MWh of telecom battery packs.
In the same period, ARE&M infused INR 200 crore into Amara Raja Advanced Cell Technologies (ARACT), its wholly owned subsidiary. The company also announced plans to establish a 5 GWh battery energy storage solutions (BESS) gigafactory.
In 2022, ARE&M got into the new energy business. The company currently works in both stationary and mobile applications. Its operations include making lithium-ion cells and packs, charging products for electric vehicles, and energy storage solutions.
Manufacturing Capacity and Expansion Plans
The company operates a 1.5 GWh battery pack facility at Divitipally catering to the two- and three-wheeler segments. It also has a 1.2 GWh telecom battery pack assembly capacity at its Tirupati plant.
ARE&M expects its gigawatt-scale cell manufacturing plant, with an initial capacity of 2 GWh based on NMC chemistry, to begin operations in the first half of calendar year 2027. The company plans to scale this capacity to 16 GWh in phases by FY2030, offering both NMC and LFP chemistries.
The most recent changes show that ARE&M is still focused on growing its global presence and becoming a leader in advanced energy storage technologies.
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