- 25 Jun 2024
- ICICIdirect Research
AMARA RAJA ENERGY & MOBILITY ANNOUNCES STRATEGIC TECHNOLOGY COLLABORATION IN LITHIUM-ION BATTERY SPACE
ARE&M - 1019 Change: 23.60 (2.37 %)News: In a regulatory filing the company has informed that its wholly owned subsidiary i.e. Amara Raja Advanced Cell Technologies Pvt. Ltd (ARACT) has signed a technical licensing agreement with GIB EnergyX Slovakia s.r.o., a subsidiary of Gotion High-Tech Co Ltd. As part of the agreement GIB EnergyX will license Gotion’s world class LFP technology for lithium-ion cells to ARACT. This comprehensive agreement enables Amara Raja to manufacture world class LFP cells in both cylindrical and prismatic form factors. The scope of licensing provides access to cell technology IP, support in establishing Gigafactory facilities conforming to latest generation process technologies, integration with Gotion’s global supply chain network for critical battery materials, and customer technical support for solution deployment.
Views: This is positive development for the company and such technology tie-up was keenly awaited. It shall help Amara Raja developed its envisaged Gigafactory. The company has in the recent past entered into MoU with Govt. of Telangana for setting up of Li-Ion Battery Gigafactory. The said facility is expected to have cell manufacturing capacity of up-to 16GwH & assembly capacity of up to 5 GWh with overall investment pegged at ~₹9,500 crores over next 10 years. In the first phase, it is setting up a Li-On cell plant of 2GwH capacity at capex outlay of ~₹ 1,200 crore with likely commissioning by FY26E. This technology tie-up is in addition to Amara Raja’s recent equity stake purchase in InoBat AS. This is a positive development for the company and shall accelerate work on the new energy space.
Impact: Positive