Ultraviolette plans to license battery tech to add a new revenue stream. What it means for others?

Ultraviolette Automotive has just launched its latest electric motorcycle, the Ultraviolette X47 Crossover, which comes as a crossover between a naked streetfighter and a purpose-built adventure tourer. With this new electric motorcycle, the Indian EV startup is aiming to ramp up its business efforts in the rapidly growing Indian electric two-wheeler market.

What's more interesting is that Ultraviolette is planning to license its battery technology to other players in the industry. While this would help other companies to build their EVs in a shorter timespan with reduced time for R&D, Ultraviolette will benefit from a fresh and higher-margin revenue stream.

Speaking about this, Ultraviolete CEO Narayan Subramaniam said that the company may look at other revenue streams from offshoots of the technology side. "A little down the line, we should probably look at other revenue streams from offshoots from the technology side," he said, further adding, "We have gotten interest from EV manufacturers, companies that make space tech equipment to even performance hydroplanes. But for us currently, with the bandwidth that we have, our laser-sharp focus is on building our presence and product portfolio."

Why Ultraviolette's battery tech licensing matters?

The Qualcomm and TVS Motor Company-backed EV startup has been known for its extensive R&D. At a time when some of the key players in the Indian EV market have been trying to bring their products to market without much R&D, which often resulted in products not of par quality, Ultraviolette remained firm on its way of extensive research and development, no matter how time-taking it's been. The ultimate result is that the brand has been able to bring products to the market that have earned accolades from automotive enthusiasts and consumers for their quality and technology.

The battery is the most important component for any electric vehicle. Ultraviolette has done extensive research with its battery packs. The startup's battery packs come in large sizes, with cutting-edge cell-level fuse technology, advanced safety features including cell-level fusing, and robust, IP-67 rated aluminium enclosures that protect against water and dust. Additionally, the company prioritises performance, longevity, and safety of the battery and its vehicles over the cost, which is why it has been investing heavily in R&D and intricate battery design to offer higher quality and superior specifications compared to other electric vehicles

Licensing this battery technology to others will mean that the buyer of the technology won't have to focus on the R&D much, which can save a lot of time for the company. Instead, the company can focus on design and other stuff. This will bring down the timespan of conceptualisation to production, which could be a win-win for both firms.

EV startups face heavy cash burn from factory build-outs and the high cost of batteries and components. Ultraviolette's strategy of battery technology licensing could provide capital to expand manufacturing and the product portfolio, giving the EV companies more financial flexibility. Pursuing new business lines can divert its focus and resources from scaling core EV sales and manufacturing, a critical phase for startups still establishing market share.

Battery tech licensing is not new worldwide

With the rapid growth of EV technology, battery technology licensing is not a new business option anymore. Globally, some of the big names like Rivian and Lucid also sought to boost their revenue streams by licensing or supplying their EV technology, underscoring how capital‑intensive EV startups are looking beyond vehicle sales for profitability. Tesla, too, once revealed its intention of selling its battery packs to other EV companies.

However, in India, this business stream is yet to find a footprint. One of the key rivals of Ultraviolette and a major player in the Indian electric two-wheeler market, Ather Energy, which is also known for its reliable battery technology, revealed last month that it is not looking to license its battery tech.