Amara Raja Signs Agreement with Gotion-InoBat for Lithium-Ion Battery Production in India

Indian battery manufacturer Amara Raja Energy and Mobility announced on Monday that it has signed a licensing agreement with Gotion-InoBat-Batteries (GIB), a subsidiary of China-based Gotion High Tech. This agreement aims to facilitate the production of lithium-ion batteries in India.

GIB EnergyX Slovakia, a joint venture between Gotion and Slovakia-based InoBat, will license Gotion's lithium iron phosphate technology for lithium-ion cells to Amara Raja. Under this agreement, Amara Raja will gain access to Gotion’s cell technology intellectual property, receive support for establishing Gigafactory facilities, and be integrated into Gotion's global supply chain network.

Gotion High Tech, whose largest shareholder is the German automaker Volkswagen, specializes in lithium-ion rechargeable batteries for new energy vehicles. This partnership aligns with India's growing focus on developing domestic lithium-ion battery production capabilities, reducing reliance on imports from China and South Korea.

In a related development, Amara Raja’s competitor, Exide Energy Solutions, partnered with SVOLT in 2022 to build its own lithium-ion battery plant, expected to commence operations later this year. Additionally, in April, South Korean automakers Hyundai Motor Co and Kia Corp signed a memorandum of understanding with Exide Energy Solutions to supply batteries for their electric vehicles, enhancing their competitiveness in the Indian market.