DG Innovate plc (LON:DGI), the advanced research and development company developing pioneering solutions in sustainable mobility and energy storage, has announced the Company has entered into a Memorandum of Understanding (“MoU”) with EVage Automotive Pvt. Limited, an Indian electric vehicle maker and automotive technology company, covering the proposed establishment of a joint venture in India to manufacture and supply a range of DG Innovate’s Pareta® e-drives.
Under the MoU the parties intend, subject to agreeing and entering into definitive documentation, to establish a new joint venture company (the “JV”) in India, owned 60% by DG Innovate and 40% by EVage. It is intended that the JV will manufacture a range of DG Innovate’s Pareta® e-drives from a site in Chandigarh, Punjab, India, for supply to both EVage and third-party Indian customers, together with other international customers in due course. DG Innovate expects to benefit from both its economic interest in the JV and from licence fees from each Pareta® unit sold, including those to EVage. Additionally, EVage expect to source all of their electric vehicle drive requirements from the JV as soon as they are available.
The parties are focused on concluding definitive documentation for the JV, together with any foreign direct investment and other regulatory approvals required in India, as soon as possible, with the parties targeting the start of manufacturing by the JV within the next 12 months. Further announcements will be made as appropriate.
Commenting, Inderveer Singh, Founder and CEO of EVage said: “We are excited to bring best in class motor technology to the Indian mobility sector. EVage Motors has been a pioneer for the last ten years in the electric mobility sector and has created an EV stack for high precision manufacturing of electric vehicles. The JV will help us make the EV stack even more robust and create a clear differentiation for our customers. Our customers can expect a long lasting and proven motor technology to run our vehicles over multiple shifts in a single day.“
Commenting, Peter Bardenfleth-Hansen, CEO of DG Innovate, said: “I am delighted that we have entered into this MoU with EVage. EVage are a leading Indian electric vehicle manufacturer and are the perfect partner for DG Innovate to establish a large-scale manufacturing operation for our Pareta® e-drives at an expected modest cost. The proposed JV does not conflict with any of our existing collaborations and trading relationships, but is intended to provide an ideal quick route to market at scale for our technology.
“We are all focussed on concluding the JV arrangements as soon as possible and I look forward to providing further updates in due course.”
