Amara Raja Energy & Mobility Limited to Invest 20 Million EUR in InoBat AS

Amara Raja Energy & Mobility Limited (formerly known as Amara Raja Batteries Limited) has announced an additional investment in InoBat AS (formerly InoBat Auto AS) of Oslo, Norway. InoBat AS, the holding company of InoBat Auto JSA located in Banska Bystrica, Slovak Republic, specializes in research and development, and production of lithium-ion battery cells for electric vehicles.

This investment is aligned with Amara Raja’s strategic focus on energy and mobility, aiming to develop new green technologies and solutions. The additional investment, amounting to EUR 20 million, will increase Amara Raja's equity stake in InoBat AS from 4.8% to approximately 9.32%.

• Nature of Consideration: Cash
• Cost of Acquisition: EUR 3.603 per share
• Total Investment: EUR 20 million for an additional 4.5% equity stake.
• The acquisition is expected to be finalized by July 31, 2024, subject to fulfillment of conditions precedents.

Read the full announcement here.

Press Release 

In the press release the company termed it as a strategic investment by Amara Raja, underscoring its commitment to advancing sustainable energy solutions and expanding its footprint in the energy and mobility sector.

InoBat's innovative battery technology and advanced manufacturing capabilities align perfectly with Amara Raja's vision of a greener, more sustainable future. The company is also in the process of setting up one of India's largest gigafactories for Li-ion cell and battery pack manufacturing, with the first phase expected to be operational this year.

Vikramadithya Gourineni, Executive Director of Amara Raja, commented on the investment, stating, "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."

Read the full press release here.

Automotive Battery Sector in India 

The Indian battery market is poised for significant growth, with its size estimated at USD 7.20 billion in 2024 and expected to reach USD 15.65 billion by 2029, growing at a CAGR of 16.80% during the forecast period. This growth is driven by the emergence of new markets, such as electric vehicles (EVs) and battery energy storage systems.

Despite the absence of domestic lithium-ion manufacturing facilities, which could hinder market growth, plans for local production of lithium-ion batteries in India present lucrative opportunities. The Indian government aims to achieve 30% electric vehicle adoption by 2030, primarily focusing on electrifying two-wheelers, three-wheelers, and commercial vehicles. 

Major players in the fragmented Indian battery market include Exide Industries, Luminous Power Technologies, HBL Power Systems, TATA AutoComp GY Batteries, and Okaya Power. For a more detailed analysis read the Mordor Intelligence. 

Amara Raja Energy & Mobility Limited

Amara Raja Energy & Mobility Limited (ARE&M) offers a wide range of products and solutions, including energy storage systems, Lithium-ion cell manufacturing, EV chargers, battery pack assembly, and automotive and industrial lubricants.

As one of India's largest manufacturers of energy storage products for industrial and automotive applications, ARE&M is a preferred supplier for major telecom service providers, telecom equipment manufacturers, the UPS sector, Indian Railways, and the Power, Oil & Gas industries.

Their industrial battery brands include PowerStack, AmaronVolt, and Quanta, while their automotive battery brands, Amaron and Powerzone, are well-known across India.

InoBat AS

InoBat AS, formerly known as InoBat Auto AS, is a Norwegian holding company overseeing InoBat Auto JSA in Slovakia. Established in 2019, InoBat focuses on research and development of batteries for electric vehicles, specializing in the production of lithium-ion battery cells.

Currently in a pre-revenue stage, InoBat is raising funds to complete its pilot plant and plans to set up gigafactories across Europe. The company is developing a battery R&D center and production line in Voderady, Slovakia, and has created prototype batteries, signing agreements with various customers.