Shares in DG Innovate PLC (LSE:DGI) jumped 24% after it announced a joint venture with Indian electric vehicle maker EVage to begin production of its Pareta electric motors.
The partnership, which follows a previous agreement in March, will establish a manufacturing facility in Punjab, India, with DG Innovate holding a 60% stake and EVage 40%.
The venture will produce three types of electric motors targeting different vehicle segments, including light commercial vehicles, mid-sized passenger cars, and heavy-duty trucks.
Projected production is approximately 100,000 units over four years, with EVage committing to 32,500 units and further demand expected from third parties.
DG will provide motor designs and licence technology to the venture, while EVage will handle daily manufacturing. Production of the first motor model, the P80, is expected to begin in early 2025. The deal positions DG Innovate to capitalise on the booming global electric vehicle market.
In early trading, the stock was up 0.023p at 0.12p.