Agratas, the Tata group’s electric-vehicle battery arm, has signed a seven-year supply agreement worth $530 million (about ₹5,000 crore) with group company Jaguar Land Rover, beginning this fiscal year, according to company disclosures and an executive aware of the deal.
Agratas’ first supply agreement is expected to initially cover the supply of NMC (nickel manganese cobalt) battery cells and generate about $42 million ( ₹400 crore) in revenue in FY27, according to a Tata Motors Passenger Vehicle Ltd resolution seeking shareholder approval for the related-party transaction and the executive.
The proposed multi-year agreement delivers long-term shareholder value through supply security, cost competitiveness, technology leadership, and sustainability alignment, the resolution said.
“These transactions enable smooth and uninterrupted business operations through a consistent supply of necessary requisite quality and quantity of batteries, leading to operational efficiencies, cost optimization and enhanced productivity,” it added.
The executive said is targeting a scale-up of commercial operations in the last quarter of the current fiscal year, with the agreement expected to eventually cover both NMC and LFP (lithium iron phosphate) battery chemistries.
NMC and LFP cells are two types of lithium-ion cells used in EVs, with the former offering greater range and the latter more stability. While luxury vehicles prefer NMC cells, mass-market EVs are moving towards LFP chemistry.
The expansion of commercial operations is crucial, as the company has secured a $730 million loan facility from a consortium of banks on the back of potential supply agreements with group auto firms.
JLR and Agratas declined to comment on specifics of the agreement.
The self-reliance push
India’s automakers have been seeking to reduce their reliance on China after Beijing imposed restrictions in 2025 on exports of rare-earth magnets, a key component in
Agratas is building a 20 GWh plant in Gujarat’s Sanand and a 40 GWh plant in Somerset, UK, which will cater to captive demand from the Tata group’s automobile firms, as well as external customers.
The agreement also precedes the rollout of JLR’s EV portfolio, including the Range Rover Electric and a new range of Jaguar models, as the brand transitions to an all-electric future.
The partnership is a strategically important win-win for both companies, said Vinay Piparsania, founder of MillenStrat Advisory & Research, an automobile-focused consultancy. “It reflects a growing trend among leading conglomerates where value creation increasingly comes not just from the strength of individual businesses, but from the synergies they can unlock across the group.”
Tapping captive suppliers is expected to help JLR manage costs as it looks to save £1.7 billion pounds over the next two years as part of its enterprise mission.
The new-age Tata
The board of Agratas, a new-age venture formed in 2023, is chaired by Tata group chairperson Natarajan Chandrasekaran and also includes chief executive P.B. Balaji as a member.
Agratas’ move, under CEO Thomas Flack, to secure a long-term revenue stream comes at a crucial time for Natarajan Chandrasekaran, whose tenure is under review amid growing scrutiny of investments and returns from new businesses such as EV batteries, semiconductors, e-commerce, aviation, and electronics.
Under Chandrasekaran, the conglomerate has used dividend income from its flagship, Tata Consultancy Services Ltd, to start new businesses, including aviation (Air India), ecommerce (Tata Digital), an iPhone assembly and semiconductor business (Tata Electronics), and battery manufacturing (Agratas).
The EV battery arm received funding from a consortium of banks, along with Tata Sons. The AESC Group, headquartered in Yokohama, Japan, also bought a 12% stake in the company for ₹66 crore in March 2025. To be sure, the AESC Group is owned by the Chinese energy technology company Envision.