Electrovaya, Tata Motors team up for battery production

(Reuters) - Electrovaya (EFL.TO: Quote) said it has teamed up with India's Tata Motors Ltd (TAMO.BO: Quote) and Miljo Grenland/Innovasjon to make electric cars and batteries in Norway.

The Mississauga, Ontario-based Electrovaya said it will receive equity in Miljo, a technology license fee and a royalty based on the value of its battery technology used in the electric cars.

Electrovaya, which makes portable power technology products, said production would begin in 2009 using its Lithium Ion SuperPolymer battery technology.

Miljo, a Norwegian electric vehicle firm, will also produce electric vehicles based on Tata Motors' products, Electrovaya said.

Earlier, Tata Motors said its UK subsidiary, Tata Motors European Technical Center Plc, had bought 50.3 percent of Miljoe Grenland/Innovasjon for 94 million rupees ($2 million).

Shares of Electrovaya were up over 6 percent at C$0.26 in morning trade on the Toronto Stock Exchange.

(Reporting by Krishna Chaithanya in Bangalore; Editing by Anil D'Silva)