REG - DG Innovate PLC - Collaboration Agreement

DG InnovateAnnouncement

23/02/2023 07:00

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RNS Number : 7711Q  DG Innovate PLC  23 February 2023

23 February 2023

DG Innovate plc

 

("DG Innovate" or the "Company")

Collaboration Agreement

 

DG Innovate (LSE: DGI), the advanced research and development company
pioneering sustainable and environmentally considerate improvements to
electric mobility and energy storage, is pleased to announce that the Company
has signed a Collaboration Framework Agreement (the "Agreement") with tier one
commercial vehicle and off-highway axle suppliers, BRIST Axle System S.r.l.
("BRIST") and BASE Studio Arge ve Teknoloji Sanayi A.S. ("BASE"). The
Agreement reflects the desire of all three parties to collaborate, in order to
establish a significant position in the growing heavy vehicle electric
drivetrain market. A particular focus of the Agreement involves the
electrification of Brist and BASE's existing axle ranges, using DG Innovate's
electric drive motors and associated control systems.

 

BRIST, based in Italy, is a full system supplier of axles, both rigid and
independent suspension, and transmissions for vans, trucks and buses.  Its
products include transmissions for use with electric motors that can be
tailored for use with DG Innovate's Pareta® range.  Further information on
BRIST may be found at: https://bristaxle.com (https://bristaxle.com)

 

BASE, headquartered in Turkey, designs, engineers and manufactures heavy-duty
and off-highway vehicle products, including independent suspension drive
axles, rigid drive axles, transfer cases and complete 4x4 rolling chassis
systems equipped with its own axles and transfer cases. Further information on
BASE may be found at: https://basestudio.com.tr (https://basestudio.com.tr)

 

The key focus areas for the collaboration under the Agreement will be as
follows:

 

·    The collaboration will develop and integrate DG Innovate's innovative
Pareta® motor technology into the current range of BRIST and BASE axles to
provide a turnkey offering, with focus on commercial vehicles, buses, coaches,
military and specialty vehicle axles globally.

 

·    DG Innovate will provide BRIST and BASE its existing vehicle control
and torque vectoring system which will allow the partners to accelerate the
penetration of the product in the market sectors identified.

 

·    All three partners will use their collective expertise to accelerate
activities in the retrofit and conversion market from diesel power to full
electric drivetrain systems on commercial vehicles, buses, coaches, military
and specialty vehicles.

 

·    DG Innovate will provide UK 'in country' presence for sales and
customer support.

 

·    DG Innovate to assemble BRIST and BASE axles within the UK in due
course, with the partners to support the establishment of operations within
the UK when volumes and subsequent commercial benefits are appropriate.

 

Commenting, Remzi Oduncu, Co-founder and Managing Partner of BRIST and BASE,
said: "We are very pleased to have signed this agreement and are excited to be
working with DG Innovate.  Both BRIST and BASE are at the forefront of
technical innovation with a rapidly growing market presence. We believe that
by collaborating with DG Innovate we can generate significant new
opportunities for all parties in our chosen sectors."

 

Commenting, Peter Tierney, Chief Executive Officer of DG Innovate, said: "We
are delighted to have signed this collaboration with BRIST and BASE, which is
intended to accelerate DG Innovate's transition to becoming a full-scale
commercial supplier. Both have a significant existing market presence in our
key target areas of heavy commercial and speciality vehicles, including
military.  The collaboration is expected to provide DG Innovate with an
accelerated route to market for our Enhanced Drive Technology, together with
the ability to offer a much broader product offering, encompassing full
drivetrain systems. These systems will be applicable both for new vehicles and
in the retrofit market.

 

"This collaboration is complimentary to other relationships we already have
and I look forward to providing further updates in due course as matters
progress."

 

 

For further information please contact:

 DG Innovate plc                            C/O IFC
 Peter Tierney, CEO

 Jack Allardyce, CFO

 IFC Advisory (Financial PR & IR)           020 3934 6630
 Tim Metcalfe

 Zach Cohen

 Grant Thornton UK LLP (Financial Adviser)  020 7383 5100

 Samantha Harrison

 Jamie Barklem

 Ciara Donnelly

 OvalX (Joint Broker)                       020 7392 1400
 Tom Curran

 Thomas Smith

 WH Ireland (Joint Broker)                  020 7220 1666
 Chris Hardie
 Megan Liddell

 

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.

 

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 18 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
(https://www.dgiplc.com)

 

 

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