Amara Raja shares soared by 20% to a new peak of ₹1,656 following a strategic licensing agreement with GIB EnergyX. This pact focuses on advancing its lithium battery technology through GIB’s LFP technology, promising to boost Amara Raja’s manufacturing prowess.
The collaboration allows Amara Raja’s subsidiary, Amara Raja Advanced Cell Technologies, to leverage Gotion’s cutting-edge LFP technology. This access empowers them to produce top-tier LFP cells suitable for various applications, enhancing their product range significantly.
GIB EnergyX will provide extensive support, including intellectual property rights, assistance in setting up a state-of-the-art Gigafactory, and integration into Gotion’s global supply chain. This comprehensive support is poised to scale Amara Raja’s production capacities dramatically.
Additionally, the partnership will bolster Amara Raja’s R&D efforts through its ‘e+ Energy Labs’, aiming to spearhead India’s research in battery technology. The focus is on operationalizing Gigafactory capacities and enhancing their research foundation.
The agreement not only strengthens manufacturing capabilities but also positions Amara Raja as a crucial player in the evolving global battery landscape. Both companies also share a stake in InoBat, a firm dedicated to pioneering battery solutions for sectors like electric aviation.
Following this agreement and political developments involving Jayadev Galla of the TDP, Amara Raja’s stock witnessed a 40% surge in June, marking a year-to-date increase of 103%. This performance is noted as the best since 2014, highlighting the company’s robust market standing.
