Battery stocks in supercharge mode: Amara Raja and Exide Industries soar up to 19% on Wednesday; here is why

Battery stocks are buzzing in trade after Amara Raja Energy shares jumped nearly 19% during the regular trading session on Wednesday. A Moneycontrol report stated that Amara Raja Energy is going aggressive in lithium-ion battery manufacturing. The positive sentiment spread across other battery manufacturers as shares of Exide Industries also jumped over 8% on Wednesday.

The shares of Amara Raja Energy traded 17.4% higher at ₹903 apiece on the NSE with high volumes Over 1.5 crore sharea have been traded in Amara Raja Energy & Mobility. Similarly, shares of Exide Industries jumped traded 6.4% higher at ₹354 apiece, after hitting intraday high of ₹360 apiece on the NSE. Shares worth ₹521 crore were traded in Exide Industries on Wednesday afternoon till 3:00 pm with nearly 20% deliverable traded quantity.

Whats leading the rally?

Battery stocks, especially Amara Raja Energy & Mobility is in Focus after Moneycontrol reported that the company is accelerating its lithium-ion strategy in fast-growing telecom and data centre segments. Executive Director of Amara Raja Energy and Mobility, Vikram Gourineni, told Moneycontrol that the company has crossed 1 gigawatt hour (GWh) capacity in lithium installations in the telecom sector, an industry where the company was dominating with its lead-acid battery offerings.

He further added, “Over the next two to three years, we expect aggressive telecom rollouts. After that, there will be some replacement cycles, and we’ll increasingly focus on stationary storage applications like UPS, utility-scale storage, and other emerging use cases.”

What's happening globally?

As Indian battery manufacturers go aggressive on lithium-ion strategy, a global EV battery manufacturer achieved a significant milestone in China. CATL, the world’s leading battery manufacturer, showcased a groundbreaking new technological advancement on Tuesday. The company launched a new battery pack delivering 1000 km range on a single charge. The company also upgraded its Shenxing battery pack, which is capable of charging 10% to 98% under 7 minutes, alleviating the worries about range anxiety. The company is a global leader in EV battery manufacturing and supplies battery packs to Tesla, Xiaomi and Toyota.