Canada's Electrovaya Partners with Miljo Innovasjon and Tata Motors to Manufacture Batteries and Electric Cars in Norway

Electrovaya (Mississauga, ON), a manufacturer of portable power technology products, is entering into a partnership with Tata Motors Limited (Mumbai, India) and Miljo Innovasjon AS, a subsidiary of Miljobil Grenland A.S. (Porsgrunn, Norway), for the manufacture of electric cars and batteries in Norway from 2009. According to Industrial Info Resources (Sugar Land, TX), Miljo Innovasjon will manufacture batteries based on Lithium Ion SuperPolymer battery technology, a proprietary and award-winning innovation by Electrovaya, and will develop related technologies as well. Electrovaya's batteries will also be used in the four-door electric vehicles manufactured by Miljobil for improved driving range on a single battery charge, rapid acceleration, and greater highway speed. These vehicles will be marketed worldwide.

Miljo Innovasjon will also manufacture the electric version of Tata Motors' Indica hatchback based on Electrovaya's lithium-ion batteries. The Indica EV is a four-door vehicle designed for use on the highway with a power train designed to accelerate the car from 0 to 37 miles per hour in less than 10 seconds. The car can be driven up to 120 miles on a single charge. The Indica EV will be launched in Norway in 2009 and in India in 2010. Tata Motors hopes to tap into the burgeoning demand for electric vehicles in Europe and will position the Indica EV as a direct competitor to other cars equipped with internal combustion engines.

Electrovaya and Miljobil Grenland share a technology partnership in which the former receives equity in Miljo Innovasjon in addition to technology license fees and royalties for the use of Lithium Ion SuperPolymer batteries in the electric cars manufactured by Miljo Innovasjon. Earlier this month, Miljobil Grenland made an initial payment of $1.3 million to Electrovaya towards technology license fees for commencing production of batteries and electric cars based on the latter's technology at a new manufacturing unit in Norway. Tata Motors European Technical Centre plc, the U.K. subsidiary of Tata Motors, recently acquired a 50.3 percent equity stake in Miljo Innovasjon. This acquisition comes in the wake of Tata Motors' planned production of the Nano low-cost auto being stalled in West Bengal when the firm ran into protests with the local population against displacement and lack of adequate compensation.

Electrovaya's product portfolio includes mobile computing solutions, batteries and intelligent battery management systems for use in the aerospace and defense sectors, power systems and other plug-in applications for hybrid electric vehicles. Earlier this year, the firm announced the launch of Maya-300, a low-speed, zero-emission, all-electric vehicle. Electrovaya has 150 issued or pending technology patents. In June 2004, the firm won the "Technology Award" and the "Battery Electric Vehicle Award" for its Lithium Ion SuperPolymer battery technology at the Tour de Sol, an annual event organized by the Northeast Sustainable Energy Association (Greenfield, MA).

www.electrovaya.com