HEG incorporates new arm for manufacturing graphite node; stock soars 9%
Shares of HEG surged 9% to Rs 1,055 on the BSE in Tuesday’s intra-day trade in an otherwise range-bound market after the company announced incorporation of wholly-owned subsidiary TACC, which would manufacture graphite anode for Lithium-ion cells.
The company said incorporation of subsidiary to produce graphite anode for lithium ion cells and other advanced carbon and anode materials for various energy storage systems and materials manufacturing for green energy technologies mainly focusing on carbon and graphite based materials as anode to contribute to the sustainability and technological advancement of the global energy ecosystem.
HEG said the plant would be made in two phases, spending Rs 1,000 crore in Phase 1 over the next 3 years which would cater to 10-12 GWH of cell manufacturing capacity. In Phase 2 the company plans to double the capacity with another Rs 1,000 crore approx. catering to a total of 20-22 MWH of cell manufacturing capacity. The company aims to finish both the phases in 5-7 years.
The company would be engaged in production of graphite anodes for lithium ion cells and other advanced materials as a part of the innovation wing. In order to support the local industrial growth, the Indian government’s PLI scheme mandates 60 per cent domestic value addition for cell production. Anode material produced by us will play an important role meeting this requirement, HEG said in an exchange filing.
The company shall leverage the position of its parent as a graphite industry leader to research and develop next-generation graphite and its specialized derivative materials for clean energy storage and conversion technologies beginning with anode for Li–ion batteries.
At 10:23 AM; HEG traded 8.6 per cent higher at Rs 1,048, as compared to 0.06 per cent decline in the S&P BSE Sensex. The average trading volumes at the counter more-than-doubled with a combined around 680,000 shares changing hands on the BSE and NSE.
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