Benzinga - Shares of Amara Raja Energy & Mobility Ltd (NS:AMAR) were climbing on Monday after the automotive battery maker signed an agreement with the Italian two-wheeler maker.
What Happened: Amara Raja Advanced Cell Technologies signed an agreement with Piaggio Vehicles to develop and supply lithium iron phosphate (LFP), lithium-ion (Li-ion) cells and chargers for its electric vehicles (EVs).
The collaboration also involves developing cells and battery packs for Piaggio’s upcoming offerings, which will be produced locally at Amara Raja's Gigafactory in Divitipalli, Telangana.
"Amara Raja and Piaggio India have a long-standing mutually beneficial partnership, and I am happy to strengthen it further with the MoU we have signed today,” said Diego Graffi, chairman and managing director of Piaggio. “Together with Amara Raja, we are confident of advancing our successful EV journey as India adapts to electric mobility."
Longstanding Alliance: Amara Raja and Piaggio’s partnership dates 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.
Piaggio had an 8.12% market share in India’s three-wheeler space in the financial year 2023-24, down from 8.66% the previous year, according to data from the Federation Of Automobile Dealers Associations (FADA). Amara Raja said their partnership has enabled Piaggio’s electric vehicles to cumulatively cover over 120 crore kilometres so far. Additionally, Piaggio India introduced India’s first battery subscription model to make electric vehicles more affordable for customers.
This development follows Amara Raja’s recent agreement with Gotion-InoBat-Batteries (GIB) in June, to localise global LFP technology and produce lithium-ion cells tailored for Indian conditions. The company also has an agreement with Jiangsu Highstar Battery Manufacturing for NMC technology.
Amara Raja previously announced plans for a ₹9,500 crore gigafactory in Telangana and a research and development centre called ePositive Energy Labs in Hyderabad.
Price Action: Shares of Amara Raja Energy & Mobility were up 3.94% at ₹1,565.20 in early trade on Monday.
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