- 21 Jun 2024
- ICICI Securities
AMARA RAJA ENERGY & MOBILITY FURTHER INVESTS IN EV BATTERY R&D COMPANY BASED OUT OF EUROPE
ARE&M - 972 Change: -17.60 (-1.78 %)News: Amara Raja Energy & Mobility (ARE&M), in a regulatory filing has informed exchanged that it has further invested EUR 20mn (~₹ 180 crore) for an additional 4.5% equity stake in InoBat AS, Norway. With the above, the company’s total holding will be ~9.32% in InoBat AS, including its previous investment of EUR 10mn.
Views: The Slovak company InoBat, specializes in research, development, and production of batteries for electric vehicles custom-designed to meet the specific requirements of global mainstream and specialist OEMs within the automotive, commercial vehicle, motorsport, and aerospace sectors, and has shown significant growth in recent times. InoBat is in a pre-revenue stage and intends to raise funds to complete its pilot plant. InoBat has formed JV with other companies in the past with these JV’s now executing MoU’s for setting up Giga factories in EV battery domain. This is an interesting and positive development for the company. However, the bigger upside could be if this company act as a technology partner for Amara Raja to set up giga factory in India. We await company’s comment on this and shall closely monitor it.
Impact: Positive