Exide Industries enters into a long-term technical collaboration with SVOLT Energy Technology (China); Stock up 2%

10 Mar 2022 , 03:05 PM

Exide Industries Ltd. announced on Thursday that it has entered into a multi-year technical collaboration agreement with SVOLT Energy Technology Co. Ltd (SVOLT). As part of the agreement, SVOLT will grant Exide an irrevocable right and license to use, exploit and commercialise necessary technology and know-how owned by them for lithium-ion cell manufacturing in India.

Additionally, SVOLT will also provide the support required for setting up of a state-of-the art green field manufacturing plant on a turnkey basis.

At around 3.04 pm, Exide Industries Ltd was trading at Rs151.25 per piece up by Rs3.25 or 2.2% from its previous closing of Rs148 per piece on the BSE.

Exide is in the process of forming a Special Purpose Vehicle (SPV) by way of a wholly owned subsidiary for carrying out the said lithium-ion cell manufacturing business. It is in a fairly advanced stage of discussions for finalising the land parcel for this facility. The company has participated in the Production-Linked Incentives (PLI) Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage, issued by the Ministry of Heavy Industries.

SVOLT is a global high-tech company and is engaged in the business of production and development of lithium-ion batteries and battery systems for electric vehicles as well as for energy storage. SVOLT's comprehensive one-stop product portfolio includes battery materials, cells, modules, packs, and battery management systems as well as energy storage products.

The company is headquartered in Jiangsu province in China and employs over 9,500 people with more than 3000 R&D team members and over 500 foreign and outsourced experts with an international vision of lithium-ion battery R&D and rich experience of mass production. SVOLT is focusing on growing its global footprint and is expanding capacities to meet the increasing demand for battery applications.

Subir Chakraborty, MD & CEO, said: ‘Exide is excited to partner with SVOLT as this collaboration is a major step forward in Exide’s aspiration of becoming a leading player in the rapidly emerging new-age electric mobility and stationary application businesses in India.

With SVOLT‘s strong technical expertise, R&D capabilities and rich experience in manufacturing lithium-ion batteries, Exide plans to set-up a multi-gigawatt lithium-ion cell manufacturing facility. Spread out across two popular cell chemistries and three cell formats, this unit shall be uniquely placed to cater to the diverse requirements of customers in India. This strategic partnership is in line with Exide’s commitment to provide best-in-class batteries and energy storage solutions for automotive and industrial applications.”