Amara Raja sprints 20% on Li-ion licensing pact

Shares of auto ancillary major Amara Raja Energy & Mobility (ARE&M) hit a record high of ₹1,655 apiece, zooming 20 per cent on the BSE in Tuesday's intraday trade.

- DEEPAK KORGAONKAR

Shares of auto ancillary major Amara Raja Energy & Mobility (ARE&M) hit a record high of ₹1,655 apiece, zooming 20 per cent on the BSE in Tuesday's intraday trade. The gains were reported on account of a technical licensing agreement it signed with GIB EnergyX Slovakia, a subsidiary of China-based Gotion High-Tech Co.

Gotion Hi-tech has a global EV battery market share of 2.2 per cent and is backed by VW, and its key customers include Geely, Chery, BAIC, Leap Motors, Chana, and VinFast. As part of the agreement, GIB EnergyX will license Gotion's LFP or Lithium ferrous phosphate technology for lithium-ion cells, the company said in a regulatory filing. The stock ended the day with gains of 19.4 per cent.

The comprehensive agreement will enable Amara Raja to manufacture LFP cells in both cylindrical and prismatic form factors. The scope of licensing provides access to cell technology IP, support in establishing gigafactory facilities conforming to the latest generation process technologies, integration with Gotion's global supply chain network for critical battery materials, and customer technical support for solution deployment.