Tata’s Agratas paid £41M to AESC for battery tech know-how

To fund its UK gigafactory – a 40 GWh plant in Somerset – Agratas expanded a loan facility from £750 million to over £1.1 billion. The loan is due by September 2027 with an option to extend to March 2028. The company is also building a 20 GWh plant in Gujarat's Sanand.

Agratas's R&D spending rose from £7.7 million to £20.9 million in FY26 as it developed both LFP and NMC batteries. Employee headcount grew from 193 to 320.

AESC, founded in 2007 as a Nissan-Motor and NEC joint venture, is now controlled by China's Envision Group after a 2018 sale. Its parent company already operates a 15 GWh lithium-ion gigafactory in Sunderland, UK. The Apollo Holdings entity handling the Agratas deal provides technology services for lithium-ion battery companies.

Agratas noted in its annual UK filing that it had “entered into an agreement to purchase certain technology and know-how in the year,” with invoicing based on milestone achievements. Related-party transactions showed £31 million in FY25 and £10 million in FY26 paid to AESC Apollo.

For Tata Motors, the Agratas relationship ensures a captive battery supply as JLR pivots toward full electric. The technical tie-up with AESC provides know-how on cell chemistry and manufacturing that could lower cost and accelerate the transition. The next scheduled marker is Agratas's first battery deliveries to JLR, expected in FY27.