Aug 10, 2024 03:48 PM IST
Amara Raja had announced the establishment plan of a ₹9,500 crore gigafactory in Telangana as well as a Hyderabad R&D centre called ‘ePositive Energy Labs.’
Amara Raja Advanced Cell Technologies Pvt Ltd has signed a Memorandum of Understanding (MoU) with Piaggio Vehicles Pvt Ltd to develop and supply Lithium Iron Phosphate (LFP) Lithium-Ion (Li-ion) cells and chargers for its electric vehicles (EVs) along with developing cells and battery packs for their upcoming offerings, to be produced locally at Amara Raja’s Gigafactory in Divitipally, Telangana.
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“Amara Raja and Piaggio India have long-standing mutually beneficial partnership and I am happy to strengthen it further with the MoU we have signed today,” said Diego Graffi, Chairman & Managing Director of Piaggio Vehicles Pvt Ltd. “Together with Amara Raja we are confident of advancing our successful EV journey as India adapts to electric mobility.”
Amara Raja and Piaggio’s partnership goes back to 2020, when Amara Raja manufactured and exclusively supplied 50,000 Nickel Manganese Cobalt (NMC) lithium-ion battery packs and EV chargers to Piaggio India.
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Piaggio had an 8.12% market share in India’s three-wheeler space in the financial year 2023-24, which was a drop from its 8.66% market share during the year before, according to data from the Federation Of Automobile Dealers Associations (FADA).
Amara Raja claims the partnership has led to Piaggio’s electric vehicles cumulatively running over 120 crore kms till now.
Piaggio India had also introduced India’s first battery subscription model for making electric vehicles more affordable for customers.
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“They (Piaggio) have revolutionised the electric 3-wheeler space in the country, and we are hopeful that this new agreement will further enhance their product portfolio,” said Vikramaditya Gourineni, Executive Director of Amara Raja Energy & Mobility Ltd. “At Amara Raja, we have significantly progressed in our efforts to building world-class facilities to manufacture cell and battery packs customised for Indian conditions.”
This comes after Amara Raja, which had a 35% market share in 2023, announced its agreement with Gotion-InoBat-Batteries (GIB) on June 24, 2024, to localise current global LFP technology and produce lithium-Ion cells specifically suited for Indian conditions.
The battery giant also has an agreement with Jiangsu Highstar Battery Manufacturing Co. for NMC technology.
Amara Raja had announced the establishment plan of a ₹9,500 crore gigafactory in Telangana as well as an R&D centre called ‘ePositive Energy Labs’ in Hyderabad.
Amara Raja Advanced Cell Technologies Pvt Ltd is a wholly owned subsidiary of Amara Raja Energy & Mobility Limited, while Piaggio Vehicles Pvt Ltd is a 100% Indian subsidiary of the Italian auto giant, Piaggio Group.
How did Amara Raja Energy & Mobility shares perform?
Amara Raja Energy & Mobility Ltd shares closed at ₹1503.10 on the Bombay Stock Exchange (BSE) after the trading session on Friday, August 9, 2024. This was a gain of 3.70 points or 0.25%, compared to the previous close.
