Amara Raja Energy & Mobility signs technical licensing agreement with GIB Energy for LFP cell production – ET Auto


Amara Raja Energy & Mobility signs technical licensing agreement with GIB Energy for LFP cell production – ET Auto

The collaboration is expected to enhance Amara Raja’s product offering, drive innovation, and secure a strong market position in the rapidly evolving energy sector.

Amara Raja Energy & Mobility Ltd (ARE&M), a prominent battery manufacturer in India, has inked a technical licensing agreement with GIB EnergyX Slovakia s.r.o., a subsidiary of Gotion High-tech Co Ltd, to produce lithium iron phosphate (LFP) cells using licensed technology. The agreement, signed on June 24, 2024, in Bratislava, sets the stage for Amara Raja Advanced Cell Technologies Pvt. Ltd (ARACT), a subsidiary of ARE&M, to manufacture world-class LFP cells in both cylindrical and prismatic formats.The technical licensing agreement grants Amara Raja access to Gotion’s advanced LFP cell technology, including intellectual property (IP) rights, support for establishing gigafactory facilities, integration with Gotion’s global supply chain for critical battery materials, and customer technical support. This synergy is set to bolster Amara Raja’s efforts in operationalizing its Gigafactory manufacturing capacities and advanced R&D center, ‘ePositive Energy Labs’.

“Last year, Amara Raja announced an investment outlay of 9,500 crores to establish the Amara Raja Giga Corridor in the state of Telangana. The company aims to keep their products competitive and contemporary through access to continuous improvements in cell performance and process efficiencies through the partnership period,” reflects on the company’s commitment to innovation and capacity building.

Gotion High-tech, a global leader in battery technology, operates 8 R&D centers worldwide, boasts 8,000 patented technologies, and 20 manufacturing locations. With an expected capacity layout of 300GWh by 2025, the company stands out in the global new energy landscape.

Vikramadithya Gourineni, Executive Director of ARE&M, said, “We are very excited to announce our deepening partnership with Gotion and InoBat. We have invested a lot of time and effort over the past few years to understand the global new energy landscape and made a calculated decision to be a part of the evolving lithium battery ecosystem through our investment in InoBat. Further collaborating with GIB through their ‘Global C2C Alliance’ brings us great confidence in reinforcing our technology and supply security. We are sure that this partnership will help us accelerate our efforts in establishing the Amara Raja Giga Corridor while Gotion’s acumen lends significant customer credibility to our venture.”

Jayadev Galla, Chairman and Managing Director of ARE&M, said, “Last year’s announcements on our investments in the new energy space are part of ushering in a new era we are calling 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. During our history, we have cultivated deep relationships with customers across all automotive and industrial battery applications who trust in Amara Raja to continually deliver best-in-class solutions for all of their needs. In Amara Raja 3.0, we will once again aid our customers as they navigate their own roles in the energy transition.”

GIB, a joint venture between Gotion High-tech and InoBat, has also signed an investment agreement with the Government of Slovakia to develop the first LFP battery gigafactory in the country, positioning itself as a significant player in the battery manufacturing landscape in Europe.

InoBat, another key stakeholder in the partnership and an innovator in lithium battery technology, focuses on advanced applications such as electric aviation and aims to develop a robust ‘Cradle to Cradle’ ecosystem within the battery value chain.

Steven Cai, Chairman of GIB EnergyX and Director at Gotion High-tech Co remarked, “India is an exciting market with significant growth potential, and we deeply appreciate Amara Raja’s corporate values, success in the Indian market with energy storage products, and the strong customer relationships they have built over the years. Gotion has built a strong competitive position with its product technology and Giga factory manufacturing expertise over the years and continues to offer innovative solutions across the New Energy value chain. We are pleased with the partnership with Amara Raja to offer our LFP technology which should significantly benefit Indian customers in their energy transition journey.”

The strategic alignment between Amara Raja, GIB, and Gotion underscores a shared vision to advance India’s position in the global battery manufacturing arena, particularly aligning with the country’s push towards electric vehicles and renewable energy. The collaboration is expected to enhance Amara Raja’s product offering, drive innovation, and secure a strong market position in the rapidly evolving energy sector.

  • Published On Jun 24, 2024 at 04:25 PM IST

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