HEG Advanced shares rise 4% as subsidiary inks battery material MoU; Check details

HEG Advanced Materials Ltd shares rose 4% on Thursday after its wholly owned subsidiary, TACC Ltd, signed a non-binding memorandum of understanding (MoU) with a global lithium-ion cell manufacturer for the proposed long-term supply of up to 40,000 tonnes of synthetic graphite-based anode active material (AAM). The material is intended for electric mobility applications.

Under the proposed arrangement, TACC and the international manufacturer will work towards a phased supply agreement, subject to further discussions and finalisation of technical and commercial requirements. The collaboration also envisages research and development (R&D) and customised material development for next-generation battery technologies focused on faster charging and higher energy density.

HEG Advanced Materials shares touched a high of Rs 301.50 on Thursday, gaining 4.23% from their previous close of Rs 289.25. The stock opened at Rs 295.30 and touched a low of Rs 295.05 during the session.

HEG Advanced Materials: Details of the TACC partnership

According to the company's exchange filing dated November 12, the proposed partnership extends beyond the supply of battery materials. Both companies will explore the development of advanced anode formulations designed to improve charging speeds and energy density, which are important performance factors for next-generation electric vehicles.

The proposed supply arrangement could be scaled up as the partner expands its lithium-ion cell manufacturing capacity. However, the company clarified that the MoU is non-binding, with the final technical and commercial terms yet to be agreed upon.

The identity of the global cell manufacturer has not been disclosed. TACC said the collaboration would help it strengthen its position in the battery materials supply chain and expand its engagement with international manufacturers.

What management said

Commenting on the development, Riju Jhunjhunwala, Chairman of TACC Ltd, said, "We have long understood graphite, and this partnership reflects the trust that global leaders are placing in our capabilities."

He added that the collaboration marked a step towards supporting the global energy transition and building a competitive battery materials value chain.

Ankur Khaitan, Managing Director and CEO of TACC, said the company's focus would now be on converting the proposed partnership into execution. He added that TACC was committed to developing next-generation anode materials through innovation and consistent product quality.