Tata Group has formed a new company, Agratas Energy Solutions which will be engaged in manufacturing batteries and cells to support its electric vehicles (EV) plans. The new entity will be managed by Tata Sons, the principal investment holding company of the Tata Group.

Localising through an EV battery cell plant will serve to overcome the company’s dependence on third-party suppliers based in China and South Korea. The move comes as major players in the segment are making efforts to secure the EV supply chain ecosystem. Tata Chemicals, will continue to provide critical components for making EV batteries.

In 2021, Tata Motors carved out a separate EV company called Tata Passenger Electric Mobility, and managed external funding from TPG and Abu Dhabi state holding company ADQ, giving it a valuation of USD 9.1 billion. Tata Motors has pledged to invest more than USD two billion in its EV business over a period of five years.

Tata Motors is currently leading the passenger EV segment with a market share of more than 85 percent, and also maintains a leading position in the electric commercial vehicle category, comprising buses and small trucks.