Amara Raja Batteries is investing €10 million in InoBat Auto, a European Group focused on research and development in the field of batteries for electric vehicles and production of lithium-ion battery cells as well as tailored and customs cells.
Consisting of a subscription of 0.04% equity stake and convertible loan in InoBat Auto AS, Norway, the investment is part of the Energy and Mobility strategy Amara Raja is pursuing to foray into new green technologies and solutions through expansion and investment.
The initial investment will give Amara Raja a foothold in the thriving European EV ecosystem, where multiple battery gigafactories are being established to support the region’s determined EV push, including in the U.K., which is seeing a rising need to address increasing demand for electric vehicles, the company said in a statement.
Specifically, the investment will give access expertise that will help deploy the required technologies for manufacture of batteries for E-Mobility applications. The investment will open new R&D avenues for the company while allowing it to adapt InoBat’s highly innovative battery technology to the markets that Amara Raja already serves.
InoBat is developing a battery R&D production line in Voderady, Slovakia. The next phase of its project will focus on a manufacturing scale-up through a number of gigafactories planned across Europe and globally. It is backed by a strong consortium of partners, including CEZ, one of the major European Utilities and Rio Tinto, the global mining giant, who have made an investment in the company.
“Combining our respective strengths will give Amara Raja a foothold in the booming global EV market. We will jointly explore future opportunities together to adapt the advanced battery technology developed by InoBat for markets served by Amara Raja,” Executive Director Vikram Gourineni said.
InoBat Auto CEO Marian Bocek said the investment announcement of Amara Raja is strategically important for InoBat and its planned gigafactories across various parts of Europe.