Amara Raja Advanced Cell Technologies Pvt Ltd (ARACT), the wholly-owned subsidiary of battery manufacturer Amara Raja Energy & Mobility Ltd (ARE&M), said on Monday that it has signed a technological licencing agreement with Gotion High-Tech Col Ltd's subsidiary GIB (Gotion-InoBat Batteries) EnergyX Slovakia.

Under the terms of the agreement, GIB EnergyX will provide ARACT a license to use Gotion's LFP (lithium ferrophosphate) technology for lithium-ion cells. According to Amara Raja, the complete deal will allow the company to produce LFP cells in prismatic and cylindrical form factors.

According to Amara Raja's regulatory filing, the licensing scope includes access to intellectual property related to cell technology, assistance in setting up Gigafactory facilities that adhere to cutting-edge process technologies, integration with Gotion's global supply chain network for essential battery materials, and customer technical support for solution deployment.

According to Amara Raja, the technology transfer and service support would be a perfect match for the company's plans to operationalize its advanced research and innovation center and gigafactory production facilities, which will need an investment of Rs 9,500 crore in Telangana.

Amara Raja will be able to strengthen supply security and technology thanks to GIB's cooperation through their "Global C2C Alliance," according to ARE&M executive director Vikramadithya Gourineni.

"We are confident that this collaboration will enable us to expedite the establishment of the Amara Raja Giga Corridor, and Gotion's expertise provides our project with substantial customer credibility."

Jayadev Galla, chairman and managing director of ARE&M, stated that he believes the combination of Gotion's globally validated technology with Amara Raja's thirty years of experience in the energy and mobility field will be successful.

The director of Gotion HighTech Co. and chairman of GIB EnergyX, Steven Cai, described India as an interesting market with tremendous development potential.

The licensing agreement was signed just a few days after the Amara Raja Group increased its investment of Euro 20 million to around 9.3% in the Slovakian lithium battery technology business InoBat.

Gotion and Amara Raja are board members and shareholders of InoBat, a company developing cutting-edge applications including electric aircraft.

Recently, the government of Slovakia signed an investment agreement with GIB, a joint venture between Gotion High-Tech and InoBat, to create the first LFP battery gigafactory in that nation.

Gotion High-Tech has 20 significant manufacturing sites worldwide, eight worldwide R&D centers, 8,000 patented innovations throughout the battery industry value chain, and a capacity layout predicted to reach 300GWh by 2025.