Amara Raja Gains a key Foothold in the Booming European EV Market
29 December 2021 • Parikshit Singh
As the EV demand is at the cusp of rapid growth over the next decade, Amara Raja Batteries, India’s leading industrial and automotive battery major, gains a key foothold in the booming European EV mark.
The company today announced plans to invest in InoBat Auto (“InoBat”), a European technology developer and manufacturer of premium innovative batteries for E-mobility.
Objective of the investment
The initial investment provides access to cutting-edge EV battery technology and manufacturing expertise in the thriving European EV ecosystem, where multiple battery gigafactories are being set up to support the region’s determined EV push, including in the UK, which is seeing a rising need to address the increasing demand for EV.
This strategic move will allow Amara Raja Batteries, which announced its green technology ambitions as part of its bold ‘Energy and Mobility strategy earlier this year, to gain access to expertise that will aid in the deployment of the required technologies for the manufacture of batteries for E-Mobility applications. The investment will provide the Company with new R&D opportunities while also allowing it to adapt InoBat’s highly innovative battery technology to the markets that Amara Raja already serves.
InoBat specializes in the pioneering research, development, manufacture, and provision of premium innovative electric batteries custom-designed to meet the specific needs of customers within the automotive, commercial vehicle, motorsport, and aerospace sectors. InoBat aims to drive the implementation of electric mobility solutions by adopting a “cradle-to-cradle” strategy within a responsible ESG framework.
InoBat is currently developing a battery research and development centre and production line in Voderady, Slovakia. The next phase of the project will concentrate on a manufacturing scale-up via a number of gigafactories planned across Europe and globally. It is backed by a strong consortium of partners, including CEZ, one of the major European Utilities, and Rio Tinto (LON:RIO), the global mining giant, both of which have made investments in the company.
This investment comes as a light at the end of the tunnel for the company as they are exploring opportunities in the emerging technologies needed for the transition of e-mobility.
Vikram Gourineni, Executive Director, Amara Raja Batteries said, “We are excited to announce our investment in InoBat. InoBat has proven its capability to develop innovative battery technologies in a short span of time. Its “cradle-to-cradle” approach supports Amara Raja’s own goals on sustainability and will help to taper long-term dependence on the import of critical raw materials. Combining our respective strengths will give Amara Raja a foothold in the booming global EV market. We will jointly explore future opportunities together to adapt the advanced battery technology developed by InoBat for markets served by Amara Raja. We believe this technology can significantly move the needle and accelerate India’s own EV ambitions.”
Source: Exchange Filing