Amara Raja hits 20% upper circuit after subsidiary announces collaboration with Gotion-InoBat-Batteries

Amara Raja Energy & Mobility announced on Monday that its wholly-owned subsidiary, Amara Raja Advanced Cell Technologies (ARACT), has signed a technical licensing agreement with Gotion-InoBat-Batteries (GIB) EnergyX Slovakia, a subsidiary of Gotion High-Tech. Under the licensing agreement, GIB EnergyX will license its LFP technology for lithium-ion cells to ARACT. Shares of Amara Raja were up over 16% on Tuesday.

Through the collaboration, Amara Raja will be able to manufacture high-quality LFP cells in cylindrical and prismatic form factors. Additionally, the licensing will allow access to cell technology IP, support in setting up Gigafactory facilities with the latest process technologies, integration with Gotion’s global supply chain network for critical battery materials, and customer technical support for solution deployment.

Amara Raja said that through the technology transfer and service support, it will be able to operationalise its Gigafactory manufacturing capabilities and its research and innovation centre called e+ Energy Labs.

Last year, the company announced an investment of ₹9,500 crore to establish the Amara Raja Giga Corridor in Telangana.

Amara Raja and Gotion are both shareholders and board members in InoBat which is a lithium battery technology company that focuses on advanced applications such as electric aviation and developing an ecosystem for the battery value chain. GIB is a joint venture between Gotion High Tech and InoBat. The joint venture signed an agreement with the Government of Slovakia to set up the first LFP gigafactory in the country.

Jaydev Galla, chairman and managing director of Amara Raja Energy and Mobility said last year's announcements on the firm’s investments in the new energy space are part of ushering in a new era called Amara Raja 3.0. “We firmly believe that India will be one of the fastest growing EV markets and that Gotion’s globally proven technology coupled with our three decades of expertise in the energy and mobility space will be a winning combination,” he said.

Shares of the company have risen by nearly 94% since the beginning of the year. The stock has gained over 148% in the last one year.