ZAP & ETI Tech Of Malaysia Sign Binding MOU For Electric Vehicle Joint Venture
ZAP and Malaysian company, ETI Tech Corp. Berhad, jointly announced their intention to form a manufacturing and distribution joint venture. ZAP and ETI Tech have signed a binding Memorandum of Understanding (MOU) for the supply of ETI Tech batteries and battery management systems (BMS) for ZAP personal transportation electric vehicles. The two companies have also agreed to joint manufacturing and distribution and expect to execute a definitive agreement within ninety days from the date of signing the MOU.
Under the MOU, ZAP shall provide its personal transportation vehicle line to ETI Tech in Malaysia for the integration of its battery and BMS technology. Well known for its high standard of quality, ETI Tech is entrusted by ZAP to be responsible for the manufacturing and quality assurance of the completed electric vehicles before distribution. ZAP has further agreed to appoint ETI Tech as the distributor of ZAP electric vehicles in Malaysia and other international markets to be determined by the two companies. ETI Tech retains the rights to assign another distributor on behalf of ZAP in Malaysia, but will remain the supplier to the venture.
"ETI Tech is a maker of high quality electronics that are complimentary to the strategy ZAP is taking in the market. Not only will this help expand and improve our manufacturing capacity, it opens new markets for ZAP," said CEO Steve Schneider. "We look forward to scaling up production over time to include larger, conventional electric cars and trucks."
Schneider intends to travel to China later this week for discussions with a manufacturer of high quality lithium batteries to secure for the new venture with ETI Tech.
"It is a marvelous occasion and a great opportunity for ETI Tech to be able to work hand-in-glove with a prestigious alternative fuel technology vehicle company such as ZAP," said ETI Tech Executive Director Dennis Chuah. "This joint venture with ZAP marks a new era for ETI Tech and puts ETI Tech on the Green Technology World Map. We are honoured and proud to say that ETI Tech’s undying effort is finally recognized after one and a half years of commitment in the R&D of electric vehicles. With a concerted effort from both ETI Tech and ZAP, we will be able to expedite the commercialization of our new range of electric vehicles as planned."