Tata’s battery unit prepares to manufacture lithium ion cells: Report
The company is setting up a pilot production line for LFP cells at its upcoming battery manufacturing facility in Sanand, Gujarat.
- Aug 4, 2026,
- Updated Aug 4, 2026 1:15 PM IST
Tata Group’s battery unit, Agratas Energy Storage Solutions Pvt, is reportedly preparing to manufacture lithium iron phosphate (LFP) battery cells using its own technology for the first time. This move comes as tighter Chinese restrictions on the export of critical manufacturing know-how push the company towards greater self-sufficiency, according to sources familiar with the matter.
According to a report in Bloomberg, the company is setting up a pilot production line for LFP cells at its upcoming battery manufacturing facility in Sanand, Gujarat. A team of Indian, South Korean and Chinese engineers will work on refining manufacturing processes and validating the initial batch of LFP cells before commercial production begins, it said.
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This marks a strategic shift for Agratas after executives concluded that securing a technology licensing agreement with a Chinese company was unlikely due to Beijing’s stricter export controls. Other Indian companies, including Reliance Industries and JSW Group, have also faced challenges in accessing battery cell manufacturing technology as licensing agreements have become harder to obtain.
Developing LFP technology in-house is expected to increase both costs and the time required to scale production. In comparison, Agratas’ manufacture of nickel manganese cobalt (NMC) battery cells has benefited from a licensing agreement with Japan’s Automotive Energy Supply Corp., a unit of Hong Kong-based Envision Energy International Ltd. This partnership allowed the company to bypass early stages of technology development for NMC cells, an advantage not available for LFP cells.
An Agratas spokesperson declined to comment on plans for the pilot production line or the company’s LFP technology development.
Agratas plans to manufacture both LFP and NMC battery cells at its Sanand facility. The company plays a central role in Tata Group’s strategy to build a domestic battery manufacturing ecosystem.
LFP batteries are less expensive than NMC batteries but generally provide lower driving range. They are better suited for stationary energy storage applications and are expected to help Agratas expand into India’s growing grid-scale battery energy storage market as the country pursues its renewable energy targets. The Sanand facility is expected to begin producing NMC battery cells by early 2027.
Tata Group’s battery unit, Agratas Energy Storage Solutions Pvt, is reportedly preparing to manufacture lithium iron phosphate (LFP) battery cells using its own technology for the first time. This move comes as tighter Chinese restrictions on the export of critical manufacturing know-how push the company towards greater self-sufficiency, according to sources familiar with the matter.
According to a report in Bloomberg, the company is setting up a pilot production line for LFP cells at its upcoming battery manufacturing facility in Sanand, Gujarat. A team of Indian, South Korean and Chinese engineers will work on refining manufacturing processes and validating the initial batch of LFP cells before commercial production begins, it said.
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This marks a strategic shift for Agratas after executives concluded that securing a technology licensing agreement with a Chinese company was unlikely due to Beijing’s stricter export controls. Other Indian companies, including Reliance Industries and JSW Group, have also faced challenges in accessing battery cell manufacturing technology as licensing agreements have become harder to obtain.
Developing LFP technology in-house is expected to increase both costs and the time required to scale production. In comparison, Agratas’ manufacture of nickel manganese cobalt (NMC) battery cells has benefited from a licensing agreement with Japan’s Automotive Energy Supply Corp., a unit of Hong Kong-based Envision Energy International Ltd. This partnership allowed the company to bypass early stages of technology development for NMC cells, an advantage not available for LFP cells.
An Agratas spokesperson declined to comment on plans for the pilot production line or the company’s LFP technology development.
Agratas plans to manufacture both LFP and NMC battery cells at its Sanand facility. The company plays a central role in Tata Group’s strategy to build a domestic battery manufacturing ecosystem.
LFP batteries are less expensive than NMC batteries but generally provide lower driving range. They are better suited for stationary energy storage applications and are expected to help Agratas expand into India’s growing grid-scale battery energy storage market as the country pursues its renewable energy targets. The Sanand facility is expected to begin producing NMC battery cells by early 2027.