REG - DG Innovate PLC - Collaboration Update

DG InnovateAnnouncement

20/04/2023 07:00

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RNS Number : 8150W  DG Innovate PLC  20 April 2023

20 April 2023

DG Innovate plc

("DG Innovate" or the "Company")

Collaboration Update

 

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 an update on the
progress of the Company's collaboration with tier one commercial vehicle and
off-highway axle and transmission suppliers, BRIST Axle System S.r.l.
("BRIST") and BASE Studio Arge ve Teknoloji Sanayi A.S. ("BASE"), as announced
on 23 February 2023.

 

Following the signing of the Collaboration Framework Agreement in February the
parties have now agreed a detailed plan to develop a series of commercial
offerings, incorporating DG Innovate's technology. The objective of the
collaboration is to establish a significant position in the growing commercial
vehicle electric drivetrain market, targeting both new OEM and aftermarket
conversion opportunities.

 

These offerings are planned to comprise:

 

Remote Mount Motors

 

This relatively simple and straightforward solution for the retrofit market
will comprise a remote mounted motor, converting an existing diesel powered
bus or commercial vehicle to an electric powertrain.  With this solution DG
Innovate's integrated Pareta® motor/inverter would be mounted underneath the
vehicle in the chassis and connected via a driveshaft to the axle
differential.  The Company believes its Pareta® motor technology can readily
be used as a remote mounted solution in many retrofit applications, both for
vehicles incorporating BRIST or BASE axles and those from third parties.

 

Integrated E Axle

 

The integrated E-Axle will be a complete assembly where the Pareta® motor and
drive assembly is mounted in a fully integrated manner within a BRIST axle.
The integrated E-Axle will be a key joint development and integration project
for the parties to ensure the axle will be a 'plug and play' assembly for
axles up to 13 ton rating.

 

This product will target the retrofit bus market initially whilst in parallel
be offered to Bus OEM's for new vehicle build. This newly designed integrated
axle will not only release space to accommodate more battery capacity within
the existing chassis, but being designed as a drop in replacement axle, it can
be readily and cost effectively fitted, giving significant additional usable
life extension to vehicles, along with a reduction in energy cost.

 

The integrated E-Axle is expected to have additional future applications,
including light commercial vehicles, and vocational vehicles.

 

Independent Corner Drive Axle

 

This solution will see each wheel driven independently using the Company's
electric drive technology.  Applicable to a range of 2 and 4 wheel drive
commercial vehicles, this offering will be particularly attractive for 2, 4, 6
or 8 wheel drive military applications and will build on the Company's
existing work in this area.

 

Commenting, Peter Tierney, Chief Executive Officer of DG Innovate, said: "Our
collaboration with BRIST and BASE is already accelerating DG Innovate's
transition to becoming a full-scale commercial supplier.  Since signing the
Collaboration Framework Agreement at the end of February we have been working
hard with BRIST and BASE to formulate an appropriate product strategy to
ensure we both maximise the market opportunity and can achieve commercial
revenues as soon as possible.  Leveraging our partners' already significant
industry presence we are jointly developing new solutions that are targeted at
readily accessible and existing market demand.  We believe this will provide
the most rapid route to market for our technology and I look forward to
providing further updates on this collaboration, and on our other areas of
focus, in due course as matters progress."

 

Commenting, Remzi Oduncu, Founding & Managing Partner of BASE, said: "With
DG Innovate we have now put in place our initial product roadmap. We clearly
see that both DG Innovate and BASE have similar disruptive capabilities
complementary to each other: A dynamic and agile approach to support end users
in providing a differentiated solution which is both technically advanced and
also commercially attractive."

 

Commenting, Ahmet Hacıyunus, Founding & Managing Partner of BRIST, said:
"The exciting technology and agile innovation capability of DG Innovate
matches well with our modular axle and transmission portfolio. This
collaboration and the product roadmap enhances our value proposition to grow
our share in the UK bus market. We have a clear intent to grow in the UK
market and DG Innovate collaboration is a critical pillar in this ambition."

 

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
 WH Ireland (Broker)                        020 7220 1666
 Chris Hardie
 Andrew de Andrade

 

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)

 

About BRIST

 

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/)

 

About BASE

 

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/)

 

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