UltraCharge secures partnership with leading Indonesian battery manufacturer

UltraCharge ASX UTR Indonesia battery manufacturer PT Garda Persada
PT Garda Persada must satisfy a number of pre conditions in order to proceed with the JV including securing orders for at least USD$5 million worth of batteries from its military clientele.

Battery technology could be stepping up a gear in the near future amongst Indonesia’s military after the company that supplies the country’s defence apparatus, PT Garda Persada, announced a joint-venture agreement with UltraCharge (ASX: UTR).

PT Garda Persada and UltraCharge have agreed a provisional deal to manufacture, market, distribute and sell high voltage lithium-ion battery pouch cells in Indonesia – with the news helping UltraCharge shares to rise by 9% this morning.

Currently, PT Garda supplies the Indonesian Armed Forces with lead-acid batteries for use in their radios, vehicles, aircraft, naval ships and submarines, as well as portable solar charges and a range of aviation equipment.

It also provides gel and sealed lead and acid batteries for a variety of hard and soft skin vehicles, including several different tanks and armoured personnel carriers.

PT Garda is a subsidiary of the much larger Trinitan Group which manufactures a wider range of products including solar panels, wind power solutions and inverters.

Asian battery bloom

The deal between one of Indonesia’s leading manufacturers and UltraCharge marks a significant milestone that could help propel UltraCharge to securing a large market share in not only in the country itself but also the wider region.

UltraCharge already manufactures batteries for a range of industrial and civilian applications but is looking to go a step further by developing new battery technology for torpedoes and unmanned aerial vehicles (drones).

Under the joint production agreement, UltraCharge will hold a 70% interest in the new joint venture company which aims to manufacture and market its high voltage lithium-ion pouch cell batteries to potential clientele in Indonesia and throughout the ASEAN region.

PT Garda Persada has agreed to secure firm orders for at least US$5 million worth of batteries from its military clientele to proceed with the joint-venture.

UltraCharge will then be required to contribute up to US$3 million to establish a new production facility near Jakarta.

UltraCharge has said that it will also assist in funding the costs of the joint venture business while PT Garda will contribute its resources, facilities and labour resources to run the production line. PT Garda has also agreed to bear any “post-production costs.”

“The defence industry is a significant market for UltraCharge’s unique, lightweight, high voltage lithium-ion battery technology solutions. Two weeks ago, we announced our first revenue generating a commercial deal with electric scooter company Blitz Electric Motors Ltd, and today we are proud to unveil our first joint production agreement with PT Garda Persada,” said Mr Kobi Ben-Shabat, CEO of UltraCharge.

“This deal provides further third-party validation of our unique and effective lithium-ion battery solution,” he added.

“We believe our agreement with UltraCharge will allow our joint venture company to capitalise on UltraCharge’s unity lithium-ion technology solutions, as well as assisting us to develop new battery technologies for torpedoes and drones as well as for other applications such as base transceiver stations,” said Ms Umi Kalsum, chairperson of PT Garda Persada.

She added that these type of new battery solutions “could be used for telecommunication operators in Indonesia and for other organisations using radios. The army alone uses a large quantity of communication-related batteries every year,” she added.

Filip has written in both Australia and abroad during his career, covering everything from the global economy, politics and geopolitical issues to commodities and small cap stocks on the ASX.