Chinese-Owned AESC Invests in Tata’s EV Battery Arm
AESC Group Ltd, a Japan-based electric vehicle battery maker that is owned by Chinese energy technology major Envision, has picked up a 12% equity stake in Tata Group’s EV battery unit, Agratas Energy Storage Solutions Pvt. Ltd. The investment of ₹66 crore was made in March 2025 and is the first reported involvement of a Chinese-owned company in the battery manufacturing business of Tata.
In the wake of the acquisition, Agratas board has welcomed Gordon Louis Chin, who is also the General Counsel of AESC. The transaction is seen as an important step for Tata’s new clean mobility businesses, considering the strategic significance of EV batteries for India’s future in automotive technology.
Agratas, founded in 2023, is at the forefront of Tata Group’s foray into next-generation energy storage. The company is building a 60 GWh battery manufacturing capacity through gigafactories located in India and the UK. These will serve Tata Motors’ electric vehicles and also provide batteries to other OEMs across the world, including BMW, Mercedes-Benz, Renault-Nissan, and Honda.
Tata Sons has already pumped more than ₹1,200 crore into Agratas, reflecting its long-term intent to localise EV battery production and de-risk dependence on imports. But the AESC investment also underscores the interlinked nature of global EV supply chains in which Chinese capital and technology continue to hold sway despite geopolitical concerns.
Industry watchers point out that the transaction may allow Agratas to tap into leading-edge battery technology and manufacturing knowledge while fast-tracking its production horizons. It also brings in concerns regarding strategic dependencies in India’s clean energy industry.
