Hindustan Zinc Shares Gain On Collaboration For Battery Production
The company will be the preferred supplier of zinc, a key raw material for AEsir Technologies' next-generation batteries, an exchange filing said.
Shares of Hindustan Zinc Ltd. jumped over 5% after it entered into an agreement with US-based AEsir Technologies Inc., to develop zinc batteries.
As per the Memorandum of Understanding, Hindustan Zinc will be the preferred supplier of zinc, a key raw material for AEsir Technologies' next-generation batteries, an exchange filing said.
The MoU is in line with Hindustan Zinc’s efforts towards exploring emerging applications of zinc in the clean energy transition, the filing added.
"We are achieving great innovation in this space and this collaboration with Hindustan Zinc provides us with critical raw material for the development of next-gen Nickel Zinc batteries," said AEsir Technologies.
Citing a recent Bloomberg NEF report, the company noted that global energy storage market is on an upward trajectory, with projections of an annual growth of 21%, reaching 442 GWh by 2030.
Shares of the company rose as much as 5.63% intraday, the highest level since June 13. They pared gains to trade 3.93% higher at Rs 673 apiece at 1:56 p.m., compared to a 0.20% decline in the NSE Nifty 50.
The stock has risen 111.82% year-to-date and 119.03% in the last 12 months. Total traded volume so far in the day stood at 0.78 times its 30-day average. The relative strength index was at 56.36.
Of the 12 analysts tracking the company, one maintains a 'buy' rating, three recommend a 'hold' and eight suggest a 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 49.8%.
