Pace Digitek Subsidiary Secures 3 GWh Battery Supply Agreement

BENGALURU — Lineage Power Private Limited, a material subsidiary of Pace Digitek Limited, has signed a Master Supply Agreement (MSA) with Guangzhou Rongjie Energy Technology Co., Ltd. (RJE Tech) to secure the supply of 3 GWh of lithium-ion battery cells. The agreement, announced June 29, 2026, marks a significant expansion in the company's ability to support India’s growing demand for grid-scale and commercial energy storage solutions.

The partnership involves the supply of Lithium Iron Phosphate (LFP) battery cells and related accessories. This move is part of Pace Digitek’s broader strategy to fortify its procurement framework as it scales its domestic manufacturing capabilities for Battery Energy Storage Systems (BESS).

Strengthening BESS Manufacturing Capabilities

Pace Digitek has been aggressively expanding its footprint in the energy storage segment, reporting significant order inflows throughout the 2026 fiscal year. With a cumulative BESS project portfolio now exceeding 5 GWh, the company is positioning itself as a vertically integrated player in India’s renewable energy ecosystem.

The management previously signaled that securing a stable, high-quality supply of battery cells is essential for maintaining project execution timelines and cost competitiveness. By entering into a formal agreement with a major manufacturer like Rongjie Energy, the company aims to mitigate risks associated with supply chain volatility and price fluctuations in the global lithium-ion market.

Strategic Market Positioning

The procurement of 3 GWh of battery cells comes as Pace Digitek continues to execute on major contracts, including recent wins with entities like NLC India Renewables and NTPC. The company is currently scaling its BESS manufacturing capacity, with operational goals reaching 5 GWh by July 2026 and targeting 10 GWh by October 2026.

According to regulatory filings, the company is also moving toward deeper backward integration. It plans to operationalize an in-house BESS container fabrication facility in July 2026, a move expected to reduce import dependence and improve pricing margins by approximately 4–5%.

Official Sources and Disclosure

The collaboration was formally disclosed by Pace Digitek to the National Stock Exchange (NSE) and BSE Limited on June 29, 2026. The company noted that the MSA with Rongjie Energy Technology is a pivotal step in its "manufacturing-linked supply" strategy, which aligns with India's increasing mandates for reliable grid-scale energy storage.

"This agreement represents a significant step in strengthening the Company’s battery cell sourcing framework and supports its expanding Battery Energy Storage Systems (BESS) manufacturing platform," the company stated in its official press release.

Why It Matters

The agreement has several practical implications for the energy sector:

• Supply Security: By locking in 3 GWh of capacity, the company buffers itself against potential global supply chain disruptions.

• Cost Management: Securing direct supply contracts helps the company maintain tighter control over project costs, which is critical for winning competitive EPC tenders.

• Grid Stability: The increased availability of BESS units supports India's renewable energy goals by providing the storage infrastructure necessary for grid stability and peak-load management.

Key Facts at a Glance

• Contract Volume: 3 GWh of Lithium Iron Phosphate (LFP) battery cells.

• Partnership Parties: Lineage Power (subsidiary of Pace Digitek) and Guangzhou Rongjie Energy Technology (RJE Tech).

• Strategic Objective: Strengthening the BESS manufacturing supply chain.

• Operational Scale: Pace Digitek targets 10 GWh of operational capacity by October 2026.

FAQ

What does this Master Supply Agreement cover? The agreement covers the supply of 3 GWh of LFP battery cells and related accessories to support Lineage Power’s battery storage manufacturing.

Why is this partnership important for Pace Digitek? It provides supply chain stability and high-quality battery cell sourcing, allowing the company to scale its BESS production to meet the requirements of large utility-scale energy projects.

What is the role of Lineage Power? Lineage Power is the material subsidiary of Pace Digitek, focused on the manufacturing and integration of energy storage systems and components.

How does this impact the Indian energy market? It supports the deployment of reliable energy storage infrastructure in India, which is essential for integrating renewable energy sources into the national grid.

Source: Pace Digitek Limited NSE Regulatory Filing, Saur Energy International