
In-house battery manufacturing will create sustainable mobility and supply chain control
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In-house battery manufacturing will create sustainable mobility and supply chain control
In a significant move towards electrification, Piaggio India has partnered with Amara Raja to develop and supply battery cells for its upcoming electric two-wheelers, marking a major milestone in the company's journey towards sustainable mobility.
The partnership will see Amara Raja produce Lithium Iron Phosphate (LFP) and Lithium-Ion (Li-ion) cells and chargers for Piaggio's electric two-wheelers, including Vespa and Aprilia brands. The cells will be manufactured at Amara Raja's gigafactory in Divitipally, Telangana. This collaboration builds on the existing partnership between the two companies, which has already seen Amara Raja manufacture 50,000 NMC Li-ion battery packs and EV chargers for Piaggio India three-wheelers.
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Amara Raja has invested heavily in its gigafactory, with a total investment of ₹9,500 crore. The company has already inaugurated the first phase of the factory, which has a manufacturing capacity of 1.5 GWh.This initial phase will play a crucial role in supplying battery cells to Piaggio India and other potential clients.
Additionally, Amara Raja plans to establish a research and innovation centre, 'ePositive Energy Labs', in Hyderabad. This facility will serve as a hub for developing new battery technologies, improving existing products, and driving innovation in the EV space. By investing in research and development, Amara Raja aims to stay ahead of the evolving needs of the Indian EV market.
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Piaggio India's decision to partner with Amara Raja for in-house battery manufacturing is seen as a strategic move to enhance its electric two-wheeler offerings. According to industry sources, this partnership will enable Piaggio to have greater control over its supply chain and reduce dependence on external vendors. By opting a local vendor, cost will also come down significantly for the Italian brand. Moreover, this move might also pave the way for other brands to join hands with Piaggio and Amara Raja, potentially creating a robust ecosystem for electric two-wheeler manufacturing in India.
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