Amara Raja Energy & Mobility Ltd (ARE&M) announced this week its plans to incorporate a wholly owned subsidiary in the United States with an investment of up to $5 million. The investment will be made in one or more tranches through equity, loans, securities, or capital expenditure.
The new entity is expected to be incorporated within three to six months.
The company said its US subsidiary will focus on battery and component distribution for energy and mobility segments. The local presence in USA will strengthen the company’s customer servicing capabilities and facilitate global business expansion. It will also help to evaluate future localization opportunities, including potential manufacturing or assembly operations.
ARE&M reported that its new energy business revenue exceeded INR 200 crore in the third quarter of FY2026, driven by strong domestic demand for telecom battery packs. During the quarter, the company supplied more than 250 MWh of telecom battery packs.
During the quarter, the company infused INR 200 crore into Amara Raja Advanced Cell Technologies (ARACT), its wholly owned subsidiary. It also announced plans to set up a 5 GWh battery energy storage solutions (BESS) gigafactory.
ARE&M entered the new energy segment in 2022. The new energy business caters to stationary and mobility segments with a presence across lithium-ion cell and pack manufacturing, EV charging products, and energy storage solutions.
The company operates a 1.5 GWh battery pack facility at Divitipally serving the two- and three-wheeler segments, and a 1.2 GWh telecom battery pack assembly capacity at its Tirupati plant.
ARE&M expects its gigawatt-scale cell plant, with an initial capacity of 2 GWh based on NMC chemistry, to commence operations in the first half of calendar year 2027. The company plans to scale the capacity to 16 GWh in a phased manner by FY2030, offering both NMC and LFP chemistries.
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