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), (https://www.reuters.com/markets/companies/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 (https://www.reuters.com/markets/companies/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), (https://www.reuters.com/markets/companies/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), opens new tab and Kia Corp (000270.KS), opens new tab 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), (https://www.reuters.com/markets/companies/RELI.NS), JSW Neo Energy and Amara Raja Advanced Cell Technologies were among seven companies that [submitted bids](https://www.reuters.com/world/india/jsw-amara-raja-reliance-
submit-bids-make-batteries-india-2024-04-23/) to set up battery manufacturing gigafactories in India.
Those invested/tracking please Note [from a domain expert VP member who can’t post here]
- Gotion is a much superior technology partner than Exide’s partnership with Svolt.
- Gotion has very strong LFP battery technology IP.
- Gotion supplies VW and VW owns 26% stake in Gotion.
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