Amara Raja shares rise over 2% after subsidiary collaborates with Ather Energy to supply batteries for e-bikes

The company informed the exchanges in a filing on August 1 that its wholly-owned subsidiary Amara Raja Advanced Cell Technologies Private Limited (ARACT) will sign a Memorandum of Understanding (MoU) with electric two-wheeler manufacturer Ather Energy.

The company said that as a part of this agreement, ARACT will collaborate with the EV maker to develop and supply NMC (Nickel Manganese Cobalt), LFP (Lithium Iron Phosphate) Lithium-Ion (Liion) and other advanced chemistry cells.

The batteries will be produced at Ather Energy’s upcoming Gigafactory in Divitipally, Telangana.

Amara Raja also entered into an agreement with Gotion-InoBat-Batteries (GIB), the agreement is likely to help the company in facilitating the localisation of the current global Lithium Iron Phosphate (LFP) technology for making Lithium-Ion cells, specially adapted to Indian weather conditions.

Amara Raja also has an agreement with Jiangsu Highstar Battery Manufacturing Co. for Nickel Manganese Cobalt (NMC) battery technology.

The company said in the release that India’s automotive industry is witnessing a big transition towards electric vehicles (EVs), particularly in the two-wheeler segment. Citing industry projections the company said that EV two-wheeler penetration is likely to reach 40% by 2030.

Both Amara Raja and Ather Energy plan to tap into the growing market potential for electric two-wheelers.

The company mentioned in the release that Ather Energy has two manufacturing facilities in Hosur, Tamil Nadu. Ather has also announced the setting up of another plant in Maharashtra.

Amara Raja said in the release that it aims to be one of the largest manufacturers of Li-ion and other advanced chemistry cells in India. The company announced an investment outlay of ₹9,500 crores to establish a 16 Gwh capacity gigafactory in Telangana. Additionally, the company also plans to establish an advanced research and innovation centre called ‘ePositive Energy Labs’ in Hyderabad.

Shares of Amara Raja Energy and Mobility Ltd were trading nearly flat at ₹1,624 apiece, down 0.14%, on the NSE at 11:23 am.