Amara Raja Plans to Bid for 10 GWh ACC PLI Tender

Amara Raja Targets Fresh ACC Manufacturing Opportunity

Amara Raja Energy & Mobility plans to participate in the government's fresh tender for 10 GWh of Advanced Chemistry Cell manufacturing capacity earmarked for grid-scale stationary energy storage under the Production Linked Incentive scheme. Amara Raja 10 GWh ACC PLI Tender participation will depend on the qualification criteria set out in the tender documents. Management told investors during the company's first-quarter earnings call that it is reviewing those requirements before finalising its approach. The company had previously participated in the ACC PLI process but did not secure an allocation. Its renewed interest comes as the business increases investment in stationary storage while continuing to develop a broader lithium-ion cell manufacturing strategy.

10 GWh ACC PLI Tender Details and Deadlines

The Ministry of Heavy Industries has invited bids for gigawatt-scale ACC manufacturing facilities with a cumulative capacity of 10 GWh, specifically intended for grid-scale stationary storage applications. Tender documents were made available in July, with bids due by October 13 and technical bids scheduled to open on October 14. The allocation forms part of India's broader objective of establishing 50 GWh of domestic ACC manufacturing capacity. Of that planned capacity, 40 GWh has already been awarded, leaving the additional 10 GWh tender focused on strengthening domestic cell production for large-scale energy storage requirements.

Amara Raja's Growing Focus on Energy Storage

For Amara Raja Energy & Mobility, the tender represents an opportunity to expand its participation in the growing energy-storage segment while building manufacturing capabilities that can serve stationary applications. Management said the company is assessing the qualification requirements and weighing different approaches before committing to the tender. The strategy reflects a broader shift in emphasis toward energy storage, supported by rising renewable-power deployment and the resulting requirement for systems capable of storing electricity and supporting grid stability. The company expects this market opportunity to develop alongside its longer-term electric-mobility ambitions.

BESS and Lithium-Ion Cell Gigafactory Expansion

Amara Raja has already begun construction of a 10 GWh battery energy storage system gigafactory designed to serve both grid-scale and commercial and industrial applications. The facility is expected to begin operations in the third quarter of financial year 2027. Alongside that project, the company is developing a separate lithium-ion cell gigafactory at Divitipally. The cell facility is planned to begin operations with 2 GWh of NMC-based capacity in the second quarter of calendar year 2027 and is intended to scale to 16 GWh by financial year 2030, with both NMC and LFP chemistries planned.

Energy Storage Cells Become a Strategic Priority

Management said Amara Raja will prioritise energy-storage cells as demand from stationary applications could develop faster than demand for standard electric-vehicle cells. Despite potential changes in the timing of individual capacity milestones, the company said its broader ambition remains to pursue a 15–20% share of the available lithium-cell market. This approach positions energy storage as an important near-term growth opportunity while retaining the company's longer-term focus on electric mobility. The planned combination of NMC and LFP production also gives the business flexibility to address different performance, cost and application requirements across the storage market.

Rs 1,900 Crore Investment Supports New-Energy Expansion

The company has invested Rs 1,900 crore in Amara Raja Advanced Cell Technologies to date, underscoring the scale of its new-energy expansion. Its customer qualification plant was commissioned in July, while construction of the 10 GWh BESS gigafactory has begun. The government's latest 10 GWh ACC allocation is intended to support rising storage requirements associated with renewable-energy deployment, strengthen domestic manufacturing and reduce dependence on imported cells. Amara Raja's planned investments therefore combine manufacturing scale-up with a strategic focus on stationary storage, creating a pathway to participate in India's evolving domestic battery-cell ecosystem.

Strategic Significance of the ACC Tender

Amara Raja Energy & Mobility's tender interest comes at a time when India's energy-storage requirements are expanding alongside renewable-energy deployment. The proposed 10 GWh ACC capacity is specifically directed toward grid-scale stationary storage, differentiating the opportunity from capacity intended primarily for electric-vehicle applications. For the company, participation could complement its 10 GWh BESS manufacturing project and planned lithium-ion cell capacity at Divitipally. The outcome will depend on the tender's qualification criteria, the company's final participation decision and its ability to meet the government's requirements for domestic ACC manufacturing.

Frequently Asked Questions

Why is Amara Raja Energy & Mobility participating in the 10 GWh ACC PLI tender?
Amara Raja Energy & Mobility sees the tender as an opportunity to expand its energy-storage manufacturing footprint. The company is reviewing the qualification criteria before finalising its participation strategy. It previously participated in the ACC PLI process but did not receive an allocation. The new tender is specifically focused on grid-scale stationary storage, an area that the company is prioritising as renewable-energy deployment increases demand for storage systems. Participation could complement its existing BESS gigafactory and planned lithium-ion cell manufacturing capacity.

What is the capacity and purpose of the new ACC tender?
The Ministry of Heavy Industries has offered 10 GWh of ACC manufacturing capacity for grid-scale stationary storage applications. The allocation is part of a broader 50 GWh domestic ACC manufacturing target, of which 40 GWh has already been awarded. Tender documents were issued in July, with bids due by October 13 and technical bids scheduled to open on October 14. The initiative is intended to strengthen domestic cell manufacturing and support energy-storage requirements associated with growing renewable-power deployment.

What battery manufacturing projects is Amara Raja developing?
Amara Raja is constructing a 10 GWh BESS gigafactory for grid and commercial and industrial applications, with operations expected in the third quarter of financial year 2027. It is also developing a lithium-ion cell gigafactory at Divitipally, initially planned with 2 GWh of NMC capacity in the second quarter of calendar year 2027. The facility is intended to scale to 16 GWh by financial year 2030, with both NMC and LFP chemistries planned as the company expands its energy-storage and electric-mobility capabilities.