Amara Raja Ather Energy partnership

Amara Raja Energy & Mobility’s Strategic Partnership with Ather Energy

Amara Raja Energy & Mobility has announced a significant partnership with Ather Energy, marking a strategic move to enhance the development and supply of advanced electric vehicle (EV) battery technologies. This collaboration aims to support the rapidly growing EV market in India by focusing on locally produced Nickel Manganese Cobalt (NMC) and Lithium Iron Phosphate (LFP) Lithium-Ion cells.

Key Highlights

Amara Raja Energy & Mobility’s Stock Surge

Amara Raja Energy & Mobility saw a 2.06% increase in its stock, reaching Rs 1658.90, following the announcement of its wholly-owned subsidiary, Amara Raja Advanced Cell Technologies (ARACT), signing a memorandum of understanding (MoU) with Ather Energy.

About Ather Energy

Ather Energy is a leading electric vehicle manufacturer known for its innovative approach to sustainable mobility. The company has also established a robust public charging network, Ather Grid, designed and built in India, with 1900 fast chargers installed across 200 cities as of March 2024.

Amara Raja Ather Energy partnershipAmara Raja Energy & Mobility's Strategic Partnership with Ather Energy Amara Raja Energy & Mobility has announced a significant partnership with Ather Energy, marking a strategic move to enhance the development and supply of advanced electric vehicle (EV) battery technologies. This collaboration aims to support the rapidly growing EV market in India by focusing on locally produced Nickel Manganese Cobalt (NMC) and Lithium Iron Phosphate (LFP) Lithium-Ion cells. Amara Raja Ather Energy partnership Key Highlights Amara Raja Energy & Mobility's Stock Surge Amara Raja Energy & Mobility saw a 2.06% increase in its stock, reaching Rs 1658.90, following the announcement of its wholly-owned subsidiary, Amara Raja Advanced Cell Technologies (ARACT), signing a memorandum of understanding (MoU) with Ather Energy. About Ather Energy Ather Energy is a leading electric vehicle manufacturer known for its innovative approach to sustainable mobility. The company has also established a robust public charging network, Ather Grid, designed and built in India, with 1900 fast chargers installed across 200 cities as of March 2024. MoU Details As part of the MoU, Amara Raja will collaborate with Ather Energy to develop and supply advanced NMC and LFP Lithium-Ion cells. These cells will be produced locally at Amara Raja's upcoming gigafactory in Divitipally, Telangana, leveraging advanced chemistry technologies. Strategic Partnerships Amara Raja has recently entered into an agreement with Gotion-InoBat-Batteries (GIB) to localize global LFP technology for the Indian market. Additionally, the company has partnered with Jiangsu Highstar Battery Manufacturing Co. for NMC technology, ensuring a diverse and robust technological foundation for their battery production. Industry Context and Projections With India's focus on clean and green energy, the automotive industry is undergoing a significant transition towards electric vehicles, particularly in the two-wheeler segment. Industry projections estimate that EV 2W penetration will reach 40% by 2030, highlighting the growing importance of efficient and advanced battery technologies. Executive Insights Vikramaditya Gourineni, Executive Director of Amara Raja Energy & Mobility, expressed high regard for Ather Energy's contributions to India's EV sector, stating, "We immensely respect Ather's contribution to electrifying mobility in India and their unique approach to overall ecosystem development for sustainable personal mobility solutions." Gourineni further emphasized Amara Raja's commitment to developing world-class facilities for manufacturing cell and battery packs customized for Indian conditions, aligning with the company's broader goals of supporting India's transition to clean energy. Financial Performance Amara Raja Energy & Mobility reported a significant increase in its consolidated net profit, jumping 30.9% to Rs 229.78 crore in Q4 FY24, compared to Rs 175.60 crore in Q4 FY23. Revenue from operations also saw a 19.5% increase, reaching Rs 2,907.86 crore in Q4 FY24, up from Rs 2,433.24 crore in the same quarter last year. Conclusion The partnership between Amara Raja Energy & Mobility and Ather Energy represents a pivotal step towards advancing EV battery technology in India. With strategic collaborations and a focus on local production, Amara Raja is poised to play a crucial role in supporting India's transition to a sustainable and clean energy future. FAQs: 1.What is the focus of the partnership between Amara Raja and Ather Energy? A. The partnership focuses on developing and supplying advanced NMC and LFP Lithium-Ion cells for electric vehicles. 2.What is Ather Energy known for? A. Ather Energy is known for manufacturing electric vehicles and establishing a public charging network, Ather Grid. 3.Where will the advanced chemistry cells be produced? A. The cells will be produced at Amara Raja's upcoming gigafactory in Divitipally, Telangana. 4.What are NMC and LFP technologies? A. NMC (Nickel Manganese Cobalt) and LFP (Lithium Iron Phosphate) are types of Lithium-Ion battery technologies used in electric vehicles. 5.How many fast chargers has Ather Energy installed? A. Ather Energy has installed 1900 fast chargers across 200 cities as of March 2024. 6.What is the projected EV 2W penetration in India by 2030? A. Industry projections estimate EV 2W penetration to reach 40% by 2030. 7.What recent agreements has Amara Raja entered into? A. Amara Raja has agreements with Gotion-InoBat-Batteries (GIB) for LFP technology and Jiangsu Highstar Battery Manufacturing Co. for NMC technology. 8.What was Amara Raja's net profit in Q4 FY24? A. The company's consolidated net profit jumped 30.9% to Rs 229.78 crore in Q4 FY24. 9.How did Amara Raja's revenue perform in Q4 FY24? A. Revenue from operations increased by 19.5% to Rs 2,907.86 crore in Q4 FY24. 10.What is the significance of this partnership for India's EV market? A. The partnership aims to enhance EV battery technology, supporting India's transition to clean and green energy in the automotive sector. Amara Raja Ather Energy partnership — Amara Raja Ather Energy partnership

MoU Details

As part of the MoU, Amara Raja will collaborate with Ather Energy to develop and supply advanced NMC and LFP Lithium-Ion cells. These cells will be produced locally at Amara Raja’s upcoming gigafactory in Divitipally, Telangana, leveraging advanced chemistry technologies.

Strategic Partnerships

Amara Raja has recently entered into an agreement with Gotion-InoBat-Batteries (GIB) to localize global LFP technology for the Indian market. Additionally, the company has partnered with Jiangsu Highstar Battery Manufacturing Co. for NMC technology, ensuring a diverse and robust technological foundation for their battery production.

Industry Context and Projections

With India’s focus on clean and green energy, the automotive industry is undergoing a significant transition towards electric vehicles, particularly in the two-wheeler segment. Industry projections estimate that EV 2W penetration will reach 40% by 2030, highlighting the growing importance of efficient and advanced battery technologies.

Executive Insights

Vikramaditya Gourineni, Executive Director of Amara Raja Energy & Mobility, expressed high regard for Ather Energy’s contributions to India’s EV sector, stating, “We immensely respect Ather’s contribution to electrifying mobility in India and their unique approach to overall ecosystem development for sustainable personal mobility solutions.”

Gourineni further emphasized Amara Raja’s commitment to developing world-class facilities for manufacturing cell and battery packs customized for Indian conditions, aligning with the company’s broader goals of supporting India’s transition to clean energy.

Financial Performance

Amara Raja Energy & Mobility reported a significant increase in its consolidated net profit, jumping 30.9% to Rs 229.78 crore in Q4 FY24, compared to Rs 175.60 crore in Q4 FY23. Revenue from operations also saw a 19.5% increase, reaching Rs 2,907.86 crore in Q4 FY24, up from Rs 2,433.24 crore in the same quarter last year.

Conclusion

The partnership between Amara Raja Energy & Mobility and Ather Energy represents a pivotal step towards advancing EV battery technology in India. With strategic collaborations and a focus on local production, Amara Raja is poised to play a crucial role in supporting India’s transition to a sustainable and clean energy future.