Magnis Energy Technologies Ltd’s (ASX: MNS) US-subsidiary iM3NY has entered into a JV Agreement with OSM for the manufacture and sale of lithium-ion battery packs. Magnis is the major shareholder of iM3NY.
OSM and iM3NY Joint Venture
The JV company will manufacture and sell lithium-ion battery packs produced in India to be used in OSM’s two, three and four-wheeler electric vehicles with a geographical target covering India, UAE, Bahrain, Kuwait, Qatar and Saudi Arabia.
The JV company will act as a stand-alone profit center and will take full responsibility for costs associated with carrying out its business activities.
JV Partner Roles
OSM will be responsible for the local operation along with all funding, sales and marketing, compliance and admin.
iM3NY will provide the technology and know-how required to develop and manufacture lithium-ion battery packs.
iM3NY is currently negotiating the supply of lithium-ion cells to OSM.
Shareholding and Governance
OSM will have 74% shareholding in the JV company while iM3NY will own 26%. The board composition will consist of two board seats for OSM and one seat for iM3NY.
About OSM
OSM is part of the Anglian Omega Group which is a diversified group across steel, logistics, warehousing, entertainment and real-estate industries with operations in India, UAE, Switzerland, Hong Kong, Japan and Thailand.
OSM has had significant growth in recent years with the sale of its electric vehicles mainly for the fast growing Indian market.
“We are incredibly excited to work with Omega Seiki, a like-minded partner with a future-focused mindset. This partnership is strategically important for the electrification of the automotive industry in India and the Middle East,” iM3NY CEO, Chaitanya Sharma, said.