REG - DG Innovate PLC - MoU for Proposed Indian Manufacturing JV

DG InnovateAnnouncement

28/03/2024 07:00

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RNS Number : 6002I  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
(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
(https://www.dgiplc.com/)

 

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