Toronto’s Electrovaya Inc. announced that its fully-owned subsidiary Litarion GmbH signed a Memorandum of Understanding (MOU) with a leading European battery OEM who designs and integrates battery systems for e-mobility applications, including electric buses.
Electrovaya will provide its cells with unparalleled safety and cycle-life performance to the OEM. The OEM will assemble the cells into electric-bus batteries. Deliveries start in the fourth quarter and then grow quickly into 2017. 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.