Amara Raja signs technical licensing pact for LFP cells

Amara Raja has signed the technical licensing agreement 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% and is backed by VW. It’s key customers include Geely, Chery, BAIC, Leap Motors, Chana, and VinFast.
  • As a part of the agreement, GIB will license Gotion’s LFP ( Lithium Ferrous Phosphate) technology for lithium-ion cells.
  • 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.

In December 2022, Amara Raja had announced setting up a Lithium-ion Battery Gigafactory in the State of Telangana. Hence, the current kind of technical tie-up was widely expected.

Although the investors are very excited about the prospects of the Company with this tie-up, I will wait out.

  • These are tie-ups that are needed but difficult to comment how will play out – especially given the wide swings around EV potential itself.
  • In any case, the results of the tie-up would be only known after couple of years. No need to get into a FOMO mode.
Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x