India's Amara Raja inks licensing deal with China's Gotion for lithium-ion cell manufacturing

Exide Industries

24/06/2024 16:45

BENGALURU, June 24 (Reuters) - Indian battery maker
Amara Raja Energy and Mobility  AMAR.NS  said on Monday it
signed a licensing agreement with Gotion-InoBat-Batteries (GIB),
a unit of  China-based Gotion High Tech Co  002074.SZ , to
produce lithium-ion batteries in India.
    GIB EnergyX Slovakia, a joint venture between Gotion and
Slovakia-based InoBat, will license Gotion's lithium iron
phosphate technology for lithium-ion cells to a unit of Amara
Raja, the Indian battery maker added.
    Under the licensing agreement, the Indian company will get
access to cell technology IP, support for establishing
Gigafactory facilities, and be integrated into Gotion's global
supply chain network.
        Gotion, whose largest shareholder is the German
automaker Volkswagen  VOWG_p.DE  , specializes in lithium-ion
rechargeable batteries for new energy vehicles.
    Indian automakers mostly import EV batteries from China and
South Korea and, along with domestic battery suppliers, have
been investing in developing lithium-ion battery production
capabilities within the country.
        Amara Raja’s rival Exide Energy Solutions  EXID.NS 
partnered with SVOLT in 2022 to build its own lithium-ion
battery plant, which is expected to begin operations later
this year.
    In April, the South Korean auto duo, Hyundai Motor Co
 005380.KS  and Kia Corp  000270.KS  signed a memorandum of
understanding with Exide Energy Solutions to supply batteries
for their electric vehicles, to boost competitiveness in the 
Indian auto market.
    Earlier this year, Reliance Industries  RELI.NS , JSW Neo
Energy and Amara Raja Advanced Cell Technologies were among
seven companies that submitted bids to set up battery
manufacturing gigafactories in India.

 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by
Tasim Zahid)
 ((AshnaTeresa.Britto@thomsonreuters.com;))