Agratas Energy Storage Solutions, the battery unit of India’s Tata Group, is abandoning plans to license lithium-ion cell technology from Chinese partners and will instead develop its own in-house capabilities.
The closely held company is constructing a pilot production line for lithium iron phosphate (LFP) cells at its upcoming facility in Sanand, Gujarat, marking a decisive pivot in its manufacturing strategy.
Executives at Agratas concluded that securing a technology transfer agreement with a Chinese firm was effectively impossible due to Beijing’s stringent export controls on critical battery components.
The decision reflects a broader trend among non-Chinese battery manufacturers who are increasingly forced to internalize core cell-production know-how rather than rely on cross-border licensing deals.
This move comes as China tightens its grip on the global battery supply chain.
Beijing recently opened its lithium carbonate futures market to foreign traders, a strategic maneuver designed to consolidate its influence over global pricing for the critical material.