Tata's Agratas Builds Its Own Battery Tech

Why is Agratas building LFP cells from scratch?

China's tighter export curbs on battery manufacturing know-how left Agratas' chances of a Chinese LFP licensing deal "close to nil," executives concluded. With no partner to license from, Agratas is building the pilot LFP line itself at Sanand, unlike its NMC cells, which use licensed Japanese AESC technology.

How does going in-house change Agratas' timeline?

Licensing AESC's mature NMC tech let Agratas skip early development and reach commercial NMC production in India by early 2027. Building LFP from scratch, with no such shortcut, is expected to add both cost and development time before Sanand's LFP line reaches commercial scale.

Why does LFP matter beyond electric vehicles?

LFP cells cost less, run cooler and last longer through charge cycles than NMC, though they give shorter driving range. That makes them well suited to grid-scale battery storage, a market Agratas is targeting as India expands renewable energy and stationary storage infrastructure.

How are China's curbs hurting battery plans?

Reliance Industries and JSW Group are also struggling to access Chinese cell-making technology locally as existing licensing deals falter, per the article. China's export-control regime, covering LFP cathode materials, lithium processing technology and now lithium-ion batteries themselves, requires case-by-case government licence approval that can stall or block transfers.

What exactly do China's licences control?

Since November, exporters need Ministry of Commerce licences for lithium-ion batteries, cathode and anode active materials, on top of existing curbs on natural graphite, LFP cathode material and lithium processing technology, all classed as 'dual-use' national-security items.

How long do licence delays typically run?

After China's 2023 graphite export controls took effect, approvals slowed for two to three months as exporters adapted to licensing; some Indian and US applications weren't approved even after that window, while South Korean requests cleared quickly, suggesting uneven, case-by-case treatment.

Why is China so hard to route around?

China supplies almost all LFP battery manufacturing capacity and technical expertise, over 80% of global cell output, and controls midstream materials so heavily that over 70% of EVs made outside China still depend on Chinese batteries or components.

How did Japan's AESC deal speed up Agratas's NMC?

Licensing mature NMC technology from Japan's AESC let Agratas skip the early research-and-development phase entirely, unlike its from-scratch LFP effort. AESC's parent, Envision Energy, also holds a 12% stake in Agratas and acts as technology partner, giving Sanand's Phase 1 NMC line a clearer path to CY2027 commercial production.

Why is AESC deal tied to Jaguar Land Rover?

Agratas's NMC cells and JLR, a Tata Motors subsidiary, are linked as anchor customer, giving the project strong revenue visibility. Ratings agency CARE cites this JLR tie-up, plus expected economies of scale, as key strengths offsetting implementation and technology-obsolescence risks at Sanand.

How does this compare to India's wider cell?

India's PLI-ACC scheme targeted 50 GWh of cell capacity by December 2024; by October 2025 only 1.4 GWh was commissioned, all from one firm, 2.8% of goal. Reliance and Agratas are seen as the two facilities with the clearest path to real output by 2026-2027.