DG Innovate plc (LON:DGI), the advanced research and development company developing pioneering solutions in sustainable mobility and energy storage, has announced the Company has entered into a Memorandum of Understanding (“MoU”) with EVage Automotive Pvt. Limited, 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.