Electrovaya Inc., which develops and manufactures proprietary Lithium Ion Super Polymer batteries; battery systems; and battery-related products for energy storage, clean electric transportation and more, has announced that its fully owned subsidiary Litarion GmbH signed a memorandum of understanding (MOU) with a European battery OEM that designs and integrates battery systems for e-mobility applications, especially electric buses.
Electrovaya says it will provide its cells with “unparalleled safety and cycle life performance” to the OEM, and then the OEM will assemble the cells into electric bus batteries.
The MOU also sets out the specific cell pricing and specific cell sizes and energy capacity to be delivered to the OEM. Deliveries will start in the fourth quarter of this year and then grow quickly into 2017.
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.
“We are pleased with this MOU, as this was achieved through intensive testing and validation against intense global competition,” says Fritz Mueller, head of European sales. “We believe we will become a major supplier of lithium-ion cells and batteries to this emerging electric bus industrial sector. Our OEM partner has production facilities in both China and Europe and [is] capable of driving massive sales.”
This MOU envisages production demand around $12 million in 2017, growing exponentially thereafter into the fast-growing electric bus market in Europe and Asia, a new market segment for Electrovaya.