Amara Raja and Piaggio Partner to Develop Lithium-Ion Cells
Amara Raja has signed a MoU with Piaggio Vehicles Pvt Ltd to collaborate on the development and supply of LFP and Li-ion cells.
Amara Raja Advanced Cell Technologies Pvt Ltd has signed a Memorandum of Understanding (MoU) with Piaggio Vehicles Pvt Ltd to collaborate on the development and supply of Lithium Iron Phosphate (LFP) Lithium-Ion (Li-ion) cells and chargers for Piaggio’s electric vehicles (EVs).
The partnership will also focus on developing cells and battery packs for Piaggio’s upcoming offerings, which will be locally produced at Amara Raja’s Gigafactory in Divitipally, Telangana.
Strengthening a Long-Standing Partnership:
“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 & Managing Director of Piaggio Vehicles Pvt Ltd. “Together with Amara Raja, we are confident of advancing our successful EV journey as India adapts to electric mobility.”
The collaboration between Amara Raja and Piaggio dates back to 2020 when Amara Raja exclusively supplied 50,000 Nickel Manganese Cobalt (NMC) lithium-ion battery packs and EV chargers to Piaggio India. This partnership has enabled Piaggio’s electric vehicles to cumulatively cover over 120 crore kilometers to date.
Piaggio’s Market Presence:
According to data from the Federation of Automobile Dealers Associations (FADA), in the financial year 2023-24, Piaggio held an 8.12% market share in India’s three-wheeler segment, a slight decline from its 8.66% share the previous year.
Piaggio India also introduced India’s first battery subscription model, which aims to make electric vehicles more affordable for customers.
Advancing Electric Mobility in India:
“They [Piaggio] have revolutionized the electric 3-wheeler space in the country, and we are hopeful that this new agreement will further enhance their product portfolio,” said Vikramaditya Gourineni, Executive Director of Amara Raja Energy & Mobility Ltd. “At Amara Raja, we have significantly progressed in our efforts to build world-class facilities to manufacture cell and battery packs customized for Indian conditions.”
Amara Raja’s Broader Strategic Moves:
This new MoU follows Amara Raja’s recent agreement with Gotion-InoBat-Batteries (GIB) on June 24, 2024, to localize global LFP technology and produce lithium-ion cells tailored for Indian conditions. Amara Raja, which held a 35% market share in 2023, also has an agreement with Jiangsu Highstar Battery Manufacturing Co. for NMC technology. The company announced plans to establish a ₹9,500 crore gigafactory in Telangana, along with an R&D center called ‘ePositive Energy Labs’ in Hyderabad.
Amara Raja Energy & Mobility Share Performance:
Amara Raja Advanced Cell Technologies Pvt Ltd is a wholly-owned subsidiary of Amara Raja Energy & Mobility Limited. At the same time, Piaggio Vehicles Pvt Ltd is a 100% Indian subsidiary of the Italian auto giant Piaggio Group.
Shares of Amara Raja Energy & Mobility Ltd closed at ₹1503.10 on the Bombay Stock Exchange (BSE) after the trading session on Friday, August 9, 2024. This marked a gain of 3.70 points or 0.25% compared to the previous close.
