Automotive components manufacturer Varroc Engineering has announced plans to form a joint venture with French battery systems maker Forsee Power to develop advanced battery-pack solutions for electric vehicles. As part of the JV, Varroc will acquire a 45 per cent equity stake in Forsee Power's Indian subsidiary, which specialises in battery-pack systems. Varroc will also exercise management and operational control over the entity, the company said.
The company will additionally subscribe to Optionally Convertible Redeemable Preference Shares (OCRPS) to support the proposed joint venture. The venture will operate in India, subject to the necessary regulatory and corporate approvals.
The joint venture will initially target battery packs for three-wheelers, with plans to expand into two-wheelers, light commercial vehicles, buses, trucks, off-highway vehicles and industrial vehicles.
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JV To Target Multiple EV Segments
Forsee Power India brings expertise in battery-pack technology and systems, while Varroc will contribute its automotive engineering capabilities, established original equipment manufacturer (OEM) relationships and cost-effective manufacturing expertise, according to the company.
Forsee Power specialises in battery systems for commercial and industrial electric vehicles, including light vehicles, off-highway vehicles, buses, trucks and trains. The company operates in Europe, Asia and North America, designing, assembling and supplying cell-based energy management systems.
The two companies intend to combine their capabilities to develop battery-pack solutions suited to different vehicle architectures and operating conditions. The collaboration will also focus on building the capabilities needed to support the expansion of electric mobility, Varroc said.
Scaling Electric Mobility Solutions In India
Varroc said the global shift towards electric mobility is entering a new phase, increasing the need for technology solutions that can adapt to changing vehicle designs, customer requirements and the growing scale of electrification.
In India, the transition presents an opportunity to develop scalable, cost-effective and application-specific solutions for OEMs across an expanding range of vehicle segments.
"Electric mobility is evolving and growing rapidly, thus creating new opportunities and new requirements for the automotive industry. Through this evolution, OEMs will need partners who can anticipate changes and translate them into reliable, cost-effective solutions at scale," Arjun Jain, Whole Time Director & CEO -- Business I at Varroc, said in a statement.
"With the rapid growth of electric mobility adoption in India, the opportunity is clear, and we are ready to scale. Joining forces with Varroc combines our battery technology with local industrial strength and customer access. Three-wheelers are our starting point, with a clear ambition to expand across two-wheelers, commercial and industrial vehicles," said Christophe Gurtner, Chairman and CEO of Forsee Power.
