Ather Energy rules out cell manufacturing, to bet on partnerships instead

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Electric scooter maker Ather Energy will not invest in manufacturing lithium-ion cells, preferring instead to source from external partners, including emerging Indian cell makers, CEO and co-founder Tarun Mehta said during an interaction with Moneycontrol on August 30.

“Lithium ion cells, we think it is honestly not necessarily worth our money, and may not really fit the ROI profile that we seek from investments to justify doing it in-house,” Mehta told Moneycontrol.

In August 2024, Electric two-wheeler maker Ather Energy signed a pact with battery manufacturer Amara Raja Energy & Mobility (ARE&M) to develop and source Lithium-ion (Li-ion) battery cells for its electric scooters.

While several EV players, including Ola Electric and Reliance New Energy, have announced ambitious plans for giga-scale cell factories, Ather is keeping its focus on design, engineering, technology, and brand.

Ather's rival Ola Electric on August 15 announced the integration of its indigenously developed 4680 battery cell into two of its key models, the S1 Pro Plus electric scooter and the Roadster X Plus motorcycle, marking a milestone in its localisation push. Deliveries of the updated vehicles will begin post Navaratri.

India’s EV industry is currently dependent on imports of lithium-ion cells from China, Taiwan, Japan, and Korea; Ola sources cells from LG Chem in South Korea and suppliers in China.

“There are great brands outside of China and some in India now who are going to be building this. We will first and foremost look at partnering with them,” Mehta said.

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India’s EV ecosystem is at a critical juncture as domestic cell manufacturing is still nascent. With government incentives such as the Production Linked Incentive (PLI) scheme, multiple players are entering the fray.

The strategy also aligns with the company’s positioning in the premium scooter segment, where differentiation through design and software has been central to its growth.