Electrovaya’s fully owned subsidiary Litarion GmbH signed a Memorandum of Understanding (MOU) with a leading European battery OEM which designs and integrates battery systems for e-mobility applications especially Electric buses. Electrovaya will provide its cells to the OEM, which will assemble the cells into electric bus batteries.
Deliveries start in Q4, CY 2016 and then grow quickly into 2017. The MOU envisages production demand around €11 million (US $12 million) in 2017 and growing rapidly thereafter into the fast-growing electric bus market in Europe and Asia, a new market segment for Electrovaya.
The MoU also sets out the specific cell pricing and specific cells sizes and energy capacity to be delivered to the OEM.
Typical electric bus batteries could be as large as 300 kWh per bus and a recent market analyst estimates that the electric bus market will require about $32 Billion of lithium ion batteries in the next 10 years.
Electrovaya’s technology and products are suited to this electric mobility market as two of the critical performance parameters are highest cycle life and highest safety, both available from Electrovaya.