SAN FRANCISCO - Exide Technologies has landed a deal to sell 105,000 more batteries a year to Toyota Motor Corp, deepening its relationship with the world's top carmaker and boosting the battery company's shares.
The lead-acid starting batteries will go into the Highlander, a midsize crossover SUV, at Toyota's plant in Princeton, Indiana, Exide said in a statement on Wednesday.
The deal is welcome news for Exide, said Ishita Manjrekar, an analyst at Primary Global Research.
It's more business for them and in terms of Toyota, it's 100,000 more cars per year. It's not a massive figure, but it's 100,000 cars. It indicates an industry turn-around, Manjrekar said.
Exide, which said its relationship with Toyota started in 1988, already supplies batteries for the carmaker's North American-produced Avalon, Camry, Corolla, Matrix and Venza, as well as its Sequoia SUV and Tundra trucks.
The company is among the world's top producers of traditional lead-acid batteries for automakers along with Johnson Controls Inc and GS Yuasa Corp. But Exide launched a new division in early November to develop new renewable energy storage and lithium-ion energy systems, joining the rush to a market that is expected to take off.
The shares of Milton, Georgia-based Exide were up more than 9 percent in after-hours trading at $8.62 after closing 1 percent lower at $7.88. The shares have recovered more than 300 percent since hitting a year-low of $1.83 each in March this year.
(Reporting by Braden Reddall and Laura Isensee; editing by Leslie Gevirtz and Andre Grenon)