An additional 20 million euros, or Rs 175 crore, have been invested by Amara Raja Energy & Mobility (ARE&M), which includes the subscription for an extra 4.5% ownership investment in InoBat of Norway. Including its prior investment of 10 million euros (Rs 88 crore), Amara Raja Energy & Mobility’s total stake in Inobat will be around 9.32% following its most recent transaction.
With this investment, Amara Raja is taking a significant step towards realising its strategic growth roadmap, which includes expanding its presence in the energy and transportation sectors and advancing sustainable energy solutions.
Modern battery technology from InoBat and its sophisticated production skills complement Amara Raja’s vision for a more sustainable and environmentally friendly future. Accordingly, the business is building one of the biggest gigafactories in India for the production of Li-ion cells and battery packs, with the first phase expected to be operational this year.
The gigafactory owned by Amara Raja is set to be built in the Mahbubnagar district of Telangana. It will produce lithium cells and battery packs with maximum capacities of 16 GWh and 5 GWh, respectively. Amara Raja E +Ve Energy Labs, a first-of-its-kind advanced energy research and innovation hub, will also be part of the initial facilities.
Vikramadithya Gourineni, Executive Director of Amara Raja, stated: “Our investment in InoBat underscores our commitment to being at the forefront of the energy revolution. InoBat’s innovative approach to battery technology complements our mission to deliver sustainable and cutting-edge energy solutions. Together, we aim to accelerate the transition to electric mobility and contribute significantly to global sustainability goals.”
Amara Raja Energy & Mobility, which manufactures Amaron and Powerzone automotive batteries, supplies them under OE relationships to Ashok Leyland, Ford India, Honda Cars India, Hyundai Motor India, Mahindra & Mahindra, Maruti Suzuki, and Tata Motors amongst others. The company also exports its industrial and automotive batteries to over 50 countries around the world.