Pace Digitek Subsidiary Secures Major 3 GWh Supply Agreement for BESS Manufacturing

Synopsis: Pace Digitek Limited’s subsidiary, Lineage Power Private Limited, has entered into a Master Supply Agreement with Guangzhou Rongjie Energy Technology Co., Ltd. for the supply of 3 GWh of lithium iron phosphate (LFP) battery cells. The long-term agreement is expected to strengthen the company’s Battery Energy Storage System (BESS) manufacturing platform and enhance its execution capabilities for utility-scale and commercial energy storage projects.

Shares of Pace Digitek Limited are likely to remain in focus after the company announced that its material subsidiary, Lineage Power Private Limited, has entered into a Master Supply Agreement (MSA) with Guangzhou Rongjie Energy Technology Co., Ltd. (RJE Tech), a leading Chinese manufacturer of lithium-ion battery cells.

With a market capitalization of Rs. 4,336.45 crores, the share of Pace Digitek Limited has reached an intraday high of Rs. 203.90 per equity share, rising nearly 2.21 percent from its previous day’s close price of Rs. 199.50. Since then, the stock has retreated and is currently trading at Rs. 201.45 per equity share. 

According to the company’s regulatory filing, Lineage Power has signed a long-term Master Supply Agreement with RJE Tech for the supply of 3 GWh of Lithium Iron Phosphate (LFP) battery cells and related accessories. The agreement is aimed at strengthening the company’s battery sourcing framework while supporting the expansion of its Battery Energy Storage System (BESS) manufacturing platform across utility-scale as well as commercial and industrial (C&I) applications.

The agreement provides long-term supply security through the procurement of next-generation 314Ah storage-specific prismatic LFP battery cells, designed to offer improved safety and longer operating life. It also establishes a framework covering pricing, quality standards, warranties, delivery schedules, technical collaboration, product validation, and continuous quality improvement. Additionally, the partnership leverages RJE Tech’s manufacturing base in China’s Guangdong–Hong Kong–Macao Greater Bay Area to facilitate efficient exports to India and other international markets.

The latest agreement significantly strengthens Pace Digitek’s position in the rapidly expanding Battery Energy Storage System (BESS) industry. Battery cells represent the most critical and highest-value component of an energy storage system, making reliable long-term sourcing essential for timely project execution and cost competitiveness. Securing cell supplies also reduces supply-chain risks amid rising global demand for lithium-ion batteries.

India’s energy storage market is expected to witness substantial growth over the coming decade, driven by increasing renewable energy capacity, grid modernization initiatives, electric vehicle adoption, and government policies promoting battery storage infrastructure. With India’s ambitious clean energy targets, demand for utility-scale BESS projects is expected to accelerate, creating significant opportunities for companies engaged in battery manufacturing, integration, and energy storage solutions.

For investors, the agreement enhances Pace Digitek’s supply-chain visibility and strengthens its manufacturing ecosystem for large-scale battery energy storage projects. As demand for energy storage solutions continues to rise globally, long-term supply partnerships could improve execution capabilities, support revenue growth, and enhance the company’s competitive positioning in the BESS segment.

Incorporated in 2007, Pace Digitek Limited provides integrated infrastructure and energy solutions across the telecom and renewable energy sectors. Through its subsidiary, Lineage Power Private Limited, the company designs, manufactures, and deploys Battery Energy Storage Systems (BESS), telecom power systems, DC power plants, and energy conversion solutions while also undertaking EPC and operations & maintenance services.

The 3 GWh battery cell supply agreement marks a significant milestone in Pace Digitek’s energy storage business and reinforces its strategy of building a scalable Battery Energy Storage System platform to capitalize on the growing global demand for grid-scale and commercial energy storage solutions.

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