Archean Chemical Plans ₹2,000 Crore Battery Gigafactory in AP

Archean Chemical signs a non-binding MoU with Andhra Pradesh to explore a ₹2,000 crore battery gigafactory in Visakhapatnam, targeting annual manufacturing capacity of up to 5 GWh.

Archean Chemical Industries Limited has signed a non-binding Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board (APEDB) to explore setting up a Battery Energy Storage Gigafactory in Visakhapatnam. The proposed project involves an indicative investment of approximately ₹2,000 crore and aims to establish an annual manufacturing capacity of up to 5 GWh.

The proposed facility is part of Archean Chemical's strategy to expand into the energy storage sector and strengthen its presence in advanced materials and battery technologies. The company intends to leverage its strategic investment in Offgrid Energy Labs, which develops zinc-bromide-based battery systems for stationary energy storage applications.

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The planned manufacturing facility is expected to support the growing demand for battery energy storage systems across renewable energy, industrial and grid applications. Such systems can store electricity generated from renewable sources and release it when required, helping address fluctuations in solar and wind power generation. The proposed 5 GWh annual capacity would position the facility as a large-scale manufacturing project within India's expanding energy storage industry.

Archean Chemical is also considering establishing a special purpose vehicle (SPV) to execute the project. The company may explore collaborations with technology providers and financial partners to support the proposed facility's development, manufacturing operations and funding requirements.

The initiative builds on Archean's investment in Offgrid Energy Labs, a technology company specialising in zinc-bromide battery chemistry. The partnership provides a connection between Archean's existing bromine business and the development of battery energy storage technologies. Zinc-bromide batteries are designed for stationary storage applications, including renewable energy integration, grid balancing, microgrids and industrial backup power.

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Offgrid Energy Labs inaugurated its first 10 MWh zinc-bromide battery pilot manufacturing facility in Hook, Hampshire, United Kingdom, in July 2026. The pilot facility is intended to support technology validation and commercial-scale development before further manufacturing expansion.

However, the proposed Andhra Pradesh gigafactory remains at an exploratory stage. Its implementation depends on feasibility assessments, validation of the underlying battery technology, financing arrangements, necessary board and regulatory approvals, and mutually acceptable government incentives. Land allotment or bidding processes and the execution of definitive agreements are also required before the project can proceed.

The MoU does not constitute a firm investment commitment. If implemented, the project could strengthen India's domestic battery manufacturing capabilities and support the development of energy storage infrastructure for its growing renewable energy sector.