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Amara Raja Energy & Mobility's arm signs MoU with Piaggio Vehicles

12 Aug 2024 Evaluate

Amara Raja Energy & Mobility's wholly owned subsidiary -- Amara Raja Advanced Cell Technologies (ARACT) has signed a Memorandum of Understanding (MoU) with Piaggio Vehicles, a 100% Indian subsidiary of the Italian auto giant, Piaggio Group.

As part of this agreement, Amara Raja will collaborate with Piaggio Vehicles to develop and supply LFP (Lithium Iron Phosphate) Lithium-Ion (Li-ion) cells and chargers for its Electric Vehicles along with developing cells and battery packs for their upcoming offerings, to be produced locally at Amara Raja’s Gigafactory in Divitipally, Telangana.

Since 2020, Amara Raja & Piaggio Vehicles have partnered to bring in transformation in the transportation sector. Amara Raja has manufactured and supplied 50,000 NMC Li-ion battery packs and EV chargers exclusively to Piaggio Vehicles which has had a cumulative run of over 120 crore kms till now.

Recently, Amara Raja entered into an agreement with Gotion-InoBat-Batteries (GIB) that will facilitate it to localise current global LFP technology for making Lithium-Ion cells specifically suited for Indian conditions. The company also has an agreement with Jiangsu Highstar Battery Manufacturing Co. for NMC technology.

Amara Raja is committed to providing products and solutions for e-mobility and energy storage markets and aims to be one of the largest manufacturers of Li-ion and other advanced chemistry cells in India. It had announced an investment outlay of Rs 9,500 crore to establish a 16Gwh capacity gigafactory in Telangana. Additionally, the company is all set to lead India’s R&D capabilities by establishing a state-of-the-art advanced research and innovation centre called ‘ePositive Energy Labs’ in Hyderabad.

Piaggio Vehicles has been at the forefront of the Electric 3-wheeler market and has introduced the country’s first and unique battery subscription model that makes the electric vehicle a lot more affordable for customers.

Amara Raja Energy & Mobility (ARE&M) is the flagship company of the group and is engaged in manufacturing of industrial and automotive batteries. The company was first to introduce Valve Regulated Lead Acid (VRLA) batteries with three-year warranty in industrial and automotive applications.

Amara Raja Energy Share Price

778.45 5.80 (0.75%)
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