Collaboration Agreement

RNS Number : 7711Q

DG Innovate PLC

23 February 2023

 

23 February 2023

DG Innovate plc

 

("DG Innovate" or the "Company")

Collaboration Agreement

DG Innovate (LSE: DGI), the advanced research and development company pioneering sustainable and environmentally considerate improvements to electric mobility and energy storage, is pleased to announce that the Company has signed a Collaboration Framework Agreement (the "Agreement") with tier one commercial vehicle and off-highway axle suppliers, BRIST Axle System S.r.l. ("BRIST") and BASE Studio Arge ve Teknoloji Sanayi A.S. ("BASE"). The Agreement reflects the desire of all three parties to collaborate, in order to establish a significant position in the growing heavy vehicle electric drivetrain market. A particular focus of the Agreement involves the electrification of Brist and BASE's existing axle ranges, using DG Innovate's electric drive motors and associated control systems.

BRIST, based in Italy, is a full system supplier of axles, both rigid and independent suspension, and transmissions for vans, trucks and buses.  Its products include transmissions for use with electric motors that can be tailored for use with DG Innovate's Pareta® range.  Further information on BRIST may be found at: https://bristaxle.com

BASE, headquartered in Turkey, designs, engineers and manufactures heavy-duty and off-highway vehicle products, including independent suspension drive axles, rigid drive axles, transfer cases and complete 4x4 rolling chassis systems equipped with its own axles and transfer cases. Further information on BASE may be found at: https://basestudio.com.tr

The key focus areas for the collaboration under the Agreement will be as follows:

· The collaboration will develop and integrate DG Innovate's innovative Pareta® motor technology into the current range of BRIST and BASE axles to provide a turnkey offering, with focus on commercial vehicles, buses, coaches, military and specialty vehicle axles globally.

· DG Innovate will provide BRIST and BASE its existing vehicle control and torque vectoring system which will allow the partners to accelerate the penetration of the product in the market sectors identified.

· All three partners will use their collective expertise to accelerate activities in the retrofit and conversion market from diesel power to full electric drivetrain systems on commercial vehicles, buses, coaches, military and specialty vehicles.

· DG Innovate will provide UK 'in country' presence for sales and customer support.

· DG Innovate to assemble BRIST and BASE axles within the UK in due course, with the partners to support the establishment of operations within the UK when volumes and subsequent commercial benefits are appropriate.

Commenting, Remzi Oduncu, Co-founder and Managing Partner of BRIST and BASE, said: "We are very pleased to have signed this agreement and are excited to be working with DG Innovate.  Both BRIST and BASE are at the forefront of technical innovation with a rapidly growing market presence. We believe that by collaborating with DG Innovate we can generate significant new opportunities for all parties in our chosen sectors."

Commenting, Peter Tierney, Chief Executive Officer of DG Innovate, said: "We are delighted to have signed this collaboration with BRIST and BASE, which is intended to accelerate DG Innovate's transition to becoming a full-scale commercial supplier. Both have a significant existing market presence in our key target areas of heavy commercial and speciality vehicles, including military.  The collaboration is expected to provide DG Innovate with an accelerated route to market for our Enhanced Drive Technology, together with the ability to offer a much broader product offering, encompassing full drivetrain systems. These systems will be applicable both for new vehicles and in the retrofit market.

"This collaboration is complimentary to other relationships we already have and I look forward to providing further updates in due course as matters progress."

For further information please contact:

DG Innovate plc	C/O IFC
Peter Tierney, CEO Jack Allardyce, CFO
IFC Advisory (Financial PR & IR)	020 3934 6630
Tim Metcalfe Zach Cohen
Grant Thornton UK LLP (Financial Adviser) Samantha Harrison Jamie Barklem Ciara Donnelly	020 7383 5100
OvalX (Joint Broker)	020 7392 1400
Tom Curran Thomas Smith
WH Ireland (Joint Broker)	020 7220 1666
Chris Hardie
Megan Liddell

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

About DG Innovate

DG Innovate is an advanced research and development company pioneering sustainable and environmentally considerate improvements to electric mobility and storage, using abundant materials and the best engineering and scientific practices. DG Innovate is currently developing its products alongside a number of major manufacturers across the transportation and energy sectors, research institutions and the UK Government, and has filed 18 patents worldwide. DG Innovate's current research and development activities are broadly split into two areas, focusing on novel electric motor technologies and energy storage solutions. Its two main products are:

- Enhanced Drive Technology (EDT) - High efficiency, cost-effective electric motors + power electronics; and

- Enhanced Battery Technology (EBT) - Sodium-ion batteries offering a sustainable energy storage solution at similar/greater energy density to incumbent technologies at a lower cost, increased safety with lower environmental footprint.

Further information may be found at: https://www.dgiplc.com

 

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