India-based Amara Raja Batteries is planning to invest €10 million in InoBat Auto, a European company that specializes in battery research and development for electric vehicles, as well as the manufacture of lithium-ion battery cells and customised cells. The investment, which consists of a 0.04 per cent ownership stake and a convertible loan in InoBat Auto AS, Norway, is part of Amara Raja’s energy and mobility strategy, which aims to expand and invest in new green technology. The investment by Amara Raja follows a $5 million investment by the company in Log 9 Materials, an Indian battery and charging company.
As per a company statement, the initial investment will establish Amara Raja in the thriving European EV ecosystem, where multiple battery gigafactories are being built to support the region’s EV push, including in the UK, which is seeing a rising need to address increasing demand for electric vehicles. The investment will specifically provide access to expertise that will aid in the deployment of essential technologies for the fabrication of batteries for e-mobility applications. The funding will help the company to pursue new R&D opportunities while also allowing it to apply InoBat’s cutting-edge battery technology to the markets that Amara Raja presently serves.
In Voderady, Slovakia, InoBat is constructing a battery R&D production line. The project’s next phase will focus on manufacturing scale-up via a number of gigafactories planned across Europe and globally. It is backed by a strong consortium of partners, including CEZ, one of Europe’s largest utilities, and Rio Tinto, the global mining giant, both of whom have invested in the company.
REGlobal’s Views: This investment will help Amara Raja to gain a foothold in the European battery market which is expanding significantly owing to the EV ambitions and uptake plans of various countries in the continent.