Ather CEO: China Curbs Won’t Impact, Focus on Local Batteries

Assurance on Supply Chain Stability Amid Global Tensions

Electric scooter manufacturer Ather Energy will remain unaffected by China’s recent decision to curb exports of rare earth magnets to India, according to Tarun Mehta, CEO and co-founder of the company. Speaking at a media briefing on April 26, just days before Ather’s much-anticipated initial public offering (IPO), Mehta emphasized that the latest curbs primarily impact the US-China relationship rather than India. Rare earth magnets are crucial components for electric vehicle motors, and China’s dominance in this sector has raised concerns globally. However, Mehta reassured stakeholders that Ather’s supply chains are secure at present.

Highlights

• Ather Energy remains unaffected by China’s rare earth export restrictions.

• CEO Tarun Mehta emphasizes minimal India-specific impact from the curbs.

• Rare earth magnets are vital for EV motor production, but Ather’s supply remains stable.

Continued Dependence on China for Lithium Cells

While rare earth magnets do not pose an immediate risk, Mehta acknowledged that lithium cells, another critical component for electric vehicle batteries, are still sourced from China. This dependency underscores a significant vulnerability in the broader EV supply chain. To address this, Ather has accelerated efforts to localize battery sourcing. Mehta highlighted partnerships with Amara Raja and LG Energy Solutions to strengthen domestic and diversified battery cell supply capabilities, reflecting the company’s broader strategy to secure its operations against potential future disruptions.

Highlights

• Lithium cell sourcing from China remains a key dependency for Ather Energy.

• Ather partners with Amara Raja and LG Energy Solutions to localize battery supplies.

• Diversifying supply chains is a central focus for future resilience.

IPO Details and Strategic Expansion Plans

Ather Energy’s IPO, scheduled to open for subscription on April 28, will comprise a fresh issue of shares worth approximately Rs 2,626 crore alongside an Offer-for-Sale (OFS) by existing shareholders, including the National Investment and Infrastructure Fund (NIIF). The proceeds from the IPO will be directed towards expanding manufacturing capacity, investing in research and development, establishing new retail outlets, and strengthening Ather’s charging infrastructure network, known as the Ather Grid. The IPO arrives at a critical juncture as India’s electric vehicle market experiences rapid growth, fueled by favorable government policies and rising consumer enthusiasm for clean energy solutions.

Highlights

• IPO to include fresh issue of shares worth Rs 2,626 crore and an OFS component.

• Funds will be used to boost manufacturing, R&D, retail expansion, and charging networks.

• Ather Grid to see significant investments from IPO proceeds.

Ather’s Growth Story and Competitive Landscape

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy has rapidly established itself as one of India’s leading electric two-wheeler manufacturers. The company competes with strong players such as Ola Electric, Bajaj Auto, and TVS Motor Company. Over the years, Ather’s focus on building a robust charging infrastructure, high-performance scooters, and a dedicated customer base has differentiated it in the increasingly crowded EV market. The company’s strategic localization efforts, combined with a proactive approach to securing critical supplies, position it strongly for long-term growth amid India’s accelerating transition to electric mobility.

Highlights

• Ather Energy founded in 2013, now among India’s top electric two-wheeler brands.

• Competing with major players like Ola Electric, Bajaj, and TVS Motor Company.

• Focus on localization and customer-centric growth strategy.