Amara Raja jumps 7% after subsidiary signs agreement with Piaggio India for development and supply of lithium-ion cells

Under the terms of the agreement, Amara Raja will collaborate with Piaggio India to develop and supply LFP (lithium iron phosphate) lithium-ion (Li-ion) cells and chargers for its electric vehicles (EVs) along with developing cells and battery packs for their upcoming offerings, to be produced locally at Amara Raja’s Gigafactory in Divitipally, Telangana.

Amara Raja said that it has manufactured and supplied 50,000 NMC Li-ion battery packs and EV chargers exclusively to Piaggio India which has had a cumulative run of over 120 crore kilometres (kms) till now.

The firm recently entered into an agreement with Gotion-InoBat-Batteries (GIB) that will facilitate it to localise current global LFP technology for making lithium-ion cells specifically suited for Indian conditions. The company said it also has an agreement with Jiangsu Highstar Battery Manufacturing Co. for NMC technology.

In another statement, the firm said that Amara Raja Advanced Cell Technologies held a grand groundbreaking ceremony for its customer qualification plant (CQP) for cell manufacturing and the foundation stone laying ceremony at Divitipally, Mahabubnagar district.

Amara Raja said that phase-1 of the battery pack plant was inaugurated with a current capacity of 1.5 gigawatt hours (GWh). The plant makes Li-ion battery packs specifically suited for Indian conditions and will be supplying to major EV original equipment manufacturers (OEMs) along with being used for stationery energy storage requirements.

“The CQP, which is all set to be operational by Q1 of the next financial year, can produce various cell types for customer testing and validation,” it said.

Shares of the firm gained nearly 95% since the beginning of the year. The stock has risen nearly 162% in the last one year.