Sterling Tools Limited has informed the Exchange about Agreements
STERTOOLS · price
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Sterling Tools Limited, through its wholly-owned subsidiary Sterling Gtake E-Mobility Ltd (SGEM), signed a Technology Licensing Agreement on 13th May 2025 with UK's Advanced Electric Machines Limited (AEM). Under the deal, SGEM gets an exclusive license to manufacture and sell magnet-free (rare-earth-free) traction motors for electric vehicles in India, based on AEM's patented technology. Production will happen at Sterling Tools' plant in Faridabad. There is no upfront consideration — only a royalty payable on sales. No new entity is being created and it is not a related-party transaction. The move is aimed at reducing India's dependence on imported permanent magnets and supporting the Make in India initiative.
This is a strategic expansion into EV components, giving Sterling Tools access to advanced magnet-free motor technology without significant upfront cost. It strengthens the company's EV portfolio and could support future revenue growth from the EV segment, though near-term financial impact is limited since payments are royalty-based.