Hero Group subsidiary Hero Electric will soon set up a joint venture with Canada-based battery maker Electrovaya for manufacturing lithium ion batteries for electric vehicles.
Hero Electric today signed a memorandum of understanding with the Canadian firm and details of the joint venture (JV) are to be finalised within next six weeks.
"We have today signed a MoU with Electrovaya for forming the JV in India. We will set up a manufacturing plant for lithium ion batteries in the country for both the domestic and export market," Hero Electric Managing Director Naveen Munjal told reporters here.
He, however, did not disclose details like the stake of both the companies in the soon-to-be-established JV, its name, investment plans and location of the proposed plant.
"These matters will be finalised within next six weeks and we will then come up with details," Munjal said.
Commenting on the JV, Electrovaya Chief Executive Officer Sankar Das Gupta said: "Electrovaya's mission is to accelerate clean transportation as a commercial reality with its advanced power systems for all classes of zero-emission EVs. The JV with Hero Electric will certainly boost this effort in India."
The Indian EV market is currently dominated by lead acid batteries.
"The lead acid batteries have limitations like need for frequent re-charging, shorter lifespan and so on. In contrast, the lithium ion batteries have the potential to revolutionise the electric vehicle (EV) market," Munjal said.
The Indian domestic electric two-wheeler market was of 1.10 lakh units last year.
"While a lead acid battery can run a scooter up to only 25-30 kilometre in one charge, the lithium ion one last much longer. This makes it more effective," he said.
He added that lithium ion batteries can be recharged up to 1,800 times, thus giving them a lifespan of around five years, as compared to 300-odd times for lead acid batteries.
Hero Electric currently sells five electric scooters -- E-Sprint, Maxi, Optima Plus, Wave Dx and Wave Dx Extra Mile. Last fiscal, it clocked sales of 25,000 units, including exports to SAARC countries and Canada.
Last month, the company had announced plans to start exporting its scooters to Latin America and Europe by the end of this fiscal and is looking for distributors in these regions.
The company's Ludhiana plant has an annual installed capacity of around 65,000 units. Hero Electric currently imports lead acid batteries from Taiwan, Japan and China for its scooters.