Tata Technologies' China unit steps up work for Agratas

Tata Technologies' China unit steps up work for Agratas

New Delhi, Sept. 24 -- Tata Technologies Ltd has stepped up work at its Shanghai-based unit to support the development and deployment of lithium-ion batteries being manufactured by Tata group battery venture Agratas Energy Storage Solutions Pvt. Ltd, as it moves closer to commercial rollout.

Tata Manufacturing Technologies (Shanghai) Co. Ltd, registered to provide manufacturing-technology consulting, engineering, software and testing services, among others, provided services worth Rs.7.34 crore to the battery venture in fiscal year 2025-26 (FY26), according to Agratas' annual related-party transaction filings.

The disclosure adds a new China link for Agratas through Tata Technologies' Shanghai operations, which reported no services to the battery venture in FY25. Agratas already has a Chinese connection through AESC (Automotive Energy Supply Corporation), its technology partner, which holds a 12% stake in the company.

At the same time, Agratas' dealings with the European unit of the conglomerate's engineering arm fell from Rs.41.2 crore in FY25 to Rs.5.01 crore in FY26.

Including about Rs.8.3 crore of services provided by the Pune-based firm, total transactions between Agratas and all Tata Technologies entities fell to Rs.20.67 crore in FY26 from Rs.49 crore in FY25.

Mint's queries to both companies about the exact nature of work between Tata Technologies' Chinese unit and Agratas remained unanswered.

In January 2024, Agratas and Tata Technologies announced a partnership to help the battery venture scale the design, development and manufacturing of lithium-ion batteries. Agratas is also collaborating with Tata Technologies to better integrate its cells into battery packs for vehicles and battery energy storage systems (BESS).

While it is not clear how Tata Technologies geographically distributed the work it planned to do for Agratas, transactions with the Chinese unit suggest it was able to work on battery development in China.

The partnership also facilitates the recruitment of employees to help with battery research and development at Agratas.

Agratas' collaboration with Tata Technologies' Chinese arm, in addition to its technology partnership with AESC, put a spotlight on how the venture is working with the Chinese supply chain to develop its lithium battery project.

Agratas also purchased sample cells from AESC's Chinese subsidiary, AESC Jiangsu Co. Ltd, to aid its own battery development for Rs.4.43 crore, the filings showed.

The close collaboration with Chinese entities assumes greater significance as Beijing tightens restrictions on technology transfers to foreign companies. The curbs have forced battery maker Amara Raja to revise its cell plans, while JSW Group put its 50GWh lithium-cell project on hold over the lack of a Chinese technology partner.

Experts have indicated that Indian cell manufacturers are deeply dependent on the Chinese value chain, suggesting there is still time before the Indian industry catches up.

"It's well known that China holds a disproportionate advantage in the battery value chain," Yogesh Aggarwal, Vipul Agrawal and Ayush Jhunjhunwala of HSBC Global Investment Research wrote in a September 2026 note.

"Despite more than 200GWh of cell manufacturing capacity announced for construction through 2035, execution delays, financial viability challenges, and deep technology dependence on Chinese and Korean licensors mean India is at least 10 years from developing a self-sufficient cell industry," the analysts said.

"Being close to the Chinese battery ecosystem can be quite valuable for Indian companies, particularly when they are trying to move from cell development to commercial-scale manufacturing. The advantage is not simply access to a particular chemistry. It is access to the entire manufacturing ecosystem around the cell," said Alekhya Datta, director at The Energy and Resources Institute (Teri).

Mint reported on 31 August that Agratas said it had an intellectual property (IP) agreement with China's Envision Group-owned battery maker AESC Apollo Holding Ltd, which makes both NMC (nickel manganese cobalt) and LFP (lithium iron phosphate) batteries.

Agratas is building a 40GWh plant in the UK and a 20GWh facility in India for lithium-ion batteries to be used in both BESS and electric vehicles. It has signed a Rs.5,000-crore deal with another Tata group company, Jaguar Land Rover, to supply EV batteries for seven years starting in FY27.Disclaimer Published by HT Digital Content Services with permission from MINT. For any query with respect to this article or any other content requirement, please contact Editor at contentservices@htdigital.in