EV Series - 2. Battery Manufactures Stocks
Episode 2 - EV Series
To Manufacture a EV , battery plays a important cost and account for major cost in whole cost of EV. Hence the revenue of companies that make EVs will be crazy when EVs penetrate in India. Hence lets start discussing stocks that make batteries fro EVs.
Lithium-ion batteries are becoming essential for clean and renewable energy transition. The batteries are gaining acceptance for their low-maintenance, lower self-discharge, high demand in multiple downstream solutions like electric-vehicles, solar energy, UPS and the telecom sector.
1. Amara raja batteries
AMARA RAJA Batteries Limited is one of the largest manufacturers of lead-acid batteries for industrial and automotive applications in the Indian storage battery industry. Headquartered at Hyderabad, India,
They are manufacturing Litium-ion batteries and lead-acid batteries .Heard of amaron battery ? Yes amara raja batteries only owns this brand.
In this industry, 60%-65% of the market share is of the organized players and the rest 35%-40% is of the unorganized players.
So growth for both these companies is emmense.
Received the award from eMobility Research Team for Lithium Ion Battery Pack @ EV Manufacturer of the year 2021 .
It has 60% market share in telecom battery sector. In telecom sector Lithium batteries for tower applications were successfully tested; field trials are expected to commence shortly . 83% market share in E - Rickshaw market in india.
Lithium ion battery technology for Telecom, Stationary & Mobility applications has been commercialized.
The company has established a New Energy SBU(Strategic Business unit) encompassing lithium cell and battery pack, EV chargers, energy storage systems, advanced home energy solutions and related products and services. While the company expects to grow the lead acid business globally, it is looking at lithium as an alternative energy storage technology opening up growth opportunities.
The company has 2 Main products , Storage battery and UPS(Ununinterruptible power supply ). And the company operates in 4 verticals , 4Wheeler & Inverters, Industrial UPS, Telecom and Others.
2. Exide Industries
Exide Industries Ltd is India's largest manufacturer of lead acid storage batteries and power storage solutions provider
This company offers storage battery and life insurance. These 2 products are unrelated and hence its a bit concerning as a investor beacause insurance and battery has no correlation.
Exide Industries, India's largest manufacturer of batteries, and Leclanché announce the launch of a new joint venture to build lithium-ion batteries and energy storage solutions to power the growth of India's electric vehicle market
Exclusive joint venture (JV) agreement signed on 27 June 2018 to address India's transition to green energy and clean transportation
Well timed JV, ideally positioned to be a leading provider to emerging multi GWh storage markets for electric vehicles and grid connected applications in India
Exide’s Lithium-ion JV, Nexcharge, collaborated with Tata Power to setup the country’s first grid-connected Lithiumion based Community Energy Storage System (CESS) .
Nexcharge today possesses India’s largest lithium-ion battery pack factory, spread across 6,00,000 sq feet of land, with a built-up area of 100,000 sq ft, located in the automotive hub of Gujarat.
3. Tata Chemicals
World’s 3 rd largest producer of Soda Ash also World's 6th largest producer of Sodium Bicarbonate . As part of its commitment to sustainability, Tata Chemicals has established a circular economy in its lithium-ion battery business. By recycling Li-ion batteries, we recover valuable materials that are part of these products and leverage science into delivering sustainable solutions.
They are partnering with Indian R&D centres (like ISRO, CSIR-CECRI and CMET) for indigenous development of actives, cells and recycling.
They have a plant site at Dholera, Gujarat, which can house any of our manufacturing operations.
Their Innovation Centre in Pune are also working on multiple chemistries as well as cell design and active manufacturing technologies.
Peer to Peer Comparison
In Depth P2P Comparison is shown in the above image. Clearly Amara raja Batteries ticks all boxes and wins in the P2P comparison. But which company will benefit more cant be said , because its very early to comment anything yet ,But one thing is for sure tata have built a great Moat over the all peers in EV Space. Well more of that in next article.
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