MoU for Proposed Indian Manufacturing JV

DG Innovate PLC

28 March 2024

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

28 March 2024

DG Innovate plc

("DG Innovate" or the "Company")

MoU for Proposed Indian Manufacturing Joint Venture

DG Innovate (LSE: DGI), the advanced research and development company developing pioneering solutions in sustainable mobility and energy storage, is pleased to announce the Company has entered into a Memorandum of Understanding ("MoU") with EVage Automotive Pvt. Limited ("EVage"), 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.

About EVage

EVage is an Indian electric vehicle automaker and automotive technology company and is engaged in the business of manufacturing and supplying electric vehicles and providing associated services.  EVage is a key supplier of zero-emission electric vans to global FMCG, e-commerce and logistics companies.  EVage commercial vehicles have been running on Indian roads for over three years and employ proprietary battery and vehicle design technologies to bring best-in-class performance and winning total lifetime cost to commercial fleets.  EVage is building a proprietary digital platform to provide efficient and reliable operations for fleets and road safety.  For more information on EVage please see: https://evagemotors.com

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."

For further information please contact:

DG Innovate plc	C/O IFC
Peter Bardenfleth- Hansen (CEO) Jack Allardyce (CFO)
IFC Advisory (Investor Relations)	020 3934 6630
Tim Metcalfe Zach Cohen
FGS Global (Public Relations)	020 7251 3801
Rollo Head Gordon Simpson Alessandro M Rubin
Grant Thornton UK LLP (Financial Adviser)	020 7383 5100
Samantha Harrison Jamie Barklem Ciara Donnelly
Cavendish Capital Markets Limited (Corporate Broker)	020 7220 0500
Adrian Hadden / George Lawson (Corporate Finance) Michael Johnson (Sales)

About DG Innovate 

DG Innovate is an advanced research and development company pioneering sustainable and environmentally considerate improvements to electric mobility and storage, using abundant materials and the best engineering and scientific practices. DG Innovate is currently developing its products alongside a number of major manufacturers across the transportation and energy sectors, research institutions and the UK Government, and has filed numerous patents worldwide. DG Innovate's current research and development activities are broadly split into two areas, focusing on novel electric motor technologies and energy storage solutions. Its two main products are: 

- Enhanced Drive Technology (EDT) - High efficiency, cost-effective electric motors + power electronics; and 

- Enhanced Battery Technology (EBT) - Sodium-ion batteries offering a sustainable energy storage solution at similar/greater energy density to incumbent technologies at a lower cost, increased safety with lower environmental footprint.  

Further information may be found at: https://www.dgiplc.com 

 

END