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MAY 31 2018

Fortum joins Clean Motion develop battery swap system for light electric vehicles in India

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 31st MAY 2018

 

In order to boost the sales of electric vehicles in India, clean energy provider Fortum has signed an agreement with Clean Motion, on offering sustainable mobility solutions through jointly developing a battery swap system, tailored for light electric vehicles in India.

The joint venture company plans to launch a pilot before the end of 2018 on an existing Zbee (three-wheeler) cluster in India before further development and expansion in India.

The primary target market for the initiative are the major taxi companies in India, and other organizations with large fleets of vehicles that are in need of high uptime in their operations, Fortum said in a statement. The vision of the company is to enable all manufacturers that make or intend to make light electric vehicles to receive an offer to use the swapping technology in their vehicles.

"Leveraging its expertise in e-mobility solutions, Fortum plans to transform mobility in India. The Indian Government has the vision to achieve fully electric mobility by 2030. Being a pioneer in providing charging solutions for electric vehicles in the Nordics, Fortum plans to extend their service and be a prominent enabler towards the achievement of this vision in India as well," said Sanjay Aggarwal, Managing Director, Fortum India.

Fortum aims to increase the market adoption of electric vehicles by offering suitable business models for the user of EVs. Aggarwal said that this project will address the end customers’ concern about the high cost of owning EV by reducing the initial costs for batteries. Fortum will own the batteries and same shall be let out to EV in swapping stations on a pay-per-use model.

The two companies believe that to create a large-scale transition there must be a cost-efficient alternative for the operators and drivers. High-quality batteries with sufficient capacity suffer high initial cost which is one of the major limitations for the transition to electric vehicles.

"The company wants to increase the utilization of its vehicles since this is in line with the overall corporate strategy of increased efficiency and use of resources," Goran Folkesson, CEO, Clean Motion AB, said. "We believe that Zbee will be utilizing the energy and will be operating in a very cost-efficient way," he added.

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Clean Energy Energy Joint Venture India

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