Lineage Power Finalizes 3 GWh Supply Agreement with Guangzhou RJE Tech to Anchor 10 GWh BESS Expansion

Lineage Power Pvt. Ltd. has inked a 3 GWh Master Supply Agreement (MSA) with Guangzhou Rongjie Energy Technology Co., Ltd. (RJE Tech), securing high-capacity Lithium Iron Phosphate (LFP) cells to underpin an aggressive manufacturing scale-up. The agreement is a pivotal component of the roadmap for Lineage’s parent company, Pace Digitek Limited, which aims to reach an aggregate 10 GWh Battery Energy Storage System (BESS) manufacturing capacity by the third quarter of FY2027.

Details of the Master Supply Agreement (MSA)

The MSA establishes a long-term operational and governance framework between Lineage Power and RJE Tech, a flagship new energy entity of the Youngy Group. The partnership is designed to stabilize the supply chain for utility-scale and commercial energy storage systems amid global procurement volatility.

• Logistics and Origin: Battery cells will be sourced from RJE Tech’s manufacturing hub in the Guangdong–Hong Kong–Macao Greater Bay Area. These components will be deployed to support Lineage Power’s domestic installations in India and its burgeoning export markets.
• Operational Governance: The agreement mandates rigorous protocols for pricing, quality standards, warranties, and delivery timelines.
• Technical Collaboration: Beyond mere procurement, the MSA facilitates a structured exchange for product validation and technical optimization. This includes the integration of cells into Lineage Power’s fully automated cell-to-pack (CTP) assembly line in India, ensuring seamless hardware-software synergy.

Technical Specifications: The Shift to 314Ah Standards

The partnership centers on the industry-wide transition toward 314Ah storage-specific prismatic cells. By maintaining the physical footprint of the legacy 280Ah standard (71×173mm) while increasing energy density, these cells allow for the standardization of high-density 5 MWh container systems, which have become the global benchmark for utility-scale efficiency.

The superior energy-to-volume ratio of the 314Ah cell is a critical driver in reducing the Levelized Cost of Storage (LCOS), providing high-efficiency performance for peak-shaving and grid-stabilization applications.

Strategic Roadmap: Scaling to 10 GWh at Bidadi

The high-density 314Ah cells will serve as the primary input for Pace Digitek’s expanding production lines in the Bidadi Industrial Area, Bengaluru. The company is executing a phased expansion to capitalize on the 5.32 GWh executable energy pipeline currently in its backlog.

• Current Operational State: 2.5 GWh installed capacity.
• July 2026 Milestone: Commissioning of an additional 2.5 GWh line, bringing total capacity to 5 GWh.
• Q2 FY2027 Target: Operationalization of an in-house container fabrication facility to streamline system integration.
• Q3 FY2027 Target: Completion of a final 5 GWh expansion phase to achieve the aggregate 10 GWh manufacturing goal.

Economic Context and Backward Integration

This supply agreement is a strategic defensive move against cost pressures in the BESS sector, where battery cells represent 60–65% of total container costs. Current market benchmarks place cell procurement at $48–50 per kWh, while fully integrated BESS containers command $82–84 per kWh.

Pace Digitek is pursuing a “backward integration” strategy to capture higher value-add. By internalizing container fabrication and utilizing automated CTP assembly, the company expects to improve operational margins by an estimated 4-5%. This integration reduces reliance on third-party assemblers and provides a buffer against the volatility of global lithium-ion pricing.

Corporate Leadership Statement

Venugopal Rao Maddisetty, Chairman and Managing Director of Pace Digitek Limited, commented on the agreement’s role in the company’s long-term trajectory:

“Securing a reliable long-term supply of high-quality battery cells is fundamental to building a scalable and resilient BESS platform. Following a comprehensive technical and commercial evaluation, we found Rongjie Energy Tech’s manufacturing capabilities, product quality, and technology roadmap to be well aligned with our long-term growth strategy. This agreement strengthens our manufacturing ecosystem, enhances supply chain visibility, and reinforces our ability to execute utility-scale and C&I BESS projects with greater confidence.”

Company Profiles and Industry Outlook

Pace Digitek / Lineage Power: Originally a telecom infrastructure specialist, Pace Digitek (a material subsidiary of the group) has completed a significant sectoral pivot. The company now oversees an executable order book of ₹113,379 million. Reflecting this transition, the Energy segment accounts for ₹88,540 million (78.1%) of the total backlog, while the legacy Telecom segment stands at ₹24,840 million. Through Lineage Power, the group provides end-to-end BESS solutions, including Power Conversion Systems (PCS) and Energy Management Systems (EMS).

Guangzhou RJE Tech: Established in 2022 in Nansha, Guangzhou, RJE Tech is the flagship new energy entity of Youngy Group. The company specializes in the R&D and production of lithium-ion cells with a massive planned annual capacity of 105 GWh.

Sectoral Outlook: This expansion directly supports India’s National Energy Storage Mission and the government’s mandate to achieve 500 GW of non-fossil fuel capacity by 2030. As renewable intermittency increases, the deployment of standardized, high-density storage platforms is essential for maintaining grid resilience and achieving round-the-clock green energy.