Electrovaya Signs MOU To Establish India’s First Lithium Ion Polymer Battery Plant
Electrovaya Inc. announced that it has entered into a non-binding MOU with Electrotherm India Ltd. to establish an Advanced Lithium SuperPolymer® battery plant in India, with a capacity of up to 10MW hours per month.
Pursuant to the MOU, a new company will be established, with shared ownership between Electrotherm and Electrovaya, to manufacture battery packs for electric two-wheelers, three-wheelers and four-wheelers produced in India. Electrotherm and Electrovaya will have the right to appoint the Managing Director and Chairman for the new company on an alternate basis. The financial conditions of the arrangement include an initial payment by the new company for Electrovaya’s technology and equity participation by Electrovaya, as well as a royalty fee based on production from the new battery plant. Electrovaya will have the exclusive right to export batteries from this plant to overseas customers.
Mukesh Bhandari, CEO of Electrotherm, commented, "Electrotherm is the leading manufacturer of electric vehicles in India and is listed on the BSE (Bombay Stock Exchange) and the NSE (National Stock Exchange) of India. With the new Lithium Superpolymer® technology, we will be able to produce electric vehicles which are the best in the world. Electrotherm’s target market is global and includes India, the neighbouring countries in Asia and also North America and Europe."
Dr. Sankar Das Gupta, CEO of Electrovaya, added, "We are extremely excited about the opportunity to partner with Electrotherm, as it is a rapidly growing, well managed Company with access to capital resources to establish and operate a new and cost- competitive plant. This further establishes Electrovaya’s capabilities to develop and support Zero Emission Clean Transportation projects and supply its technology, globally. Pursuant to the MOU, we have the opportunity to receive additional cash or shares in the joint venture company in exchange for machinery and engineering services. We are pleased to have access to the fast growing Indian market and a low cost manufacturing location."
