Dana and Hydro-Quebec have unveiled a joint-venture partnership in which TM4, a subsidiary of Hydro-Quebec, will become the supplier's source for electric motors, power inverters, and control systems.

As part of the agreement, Dana will become a majority shareholder of TM4 in exchange for CA$165m (US$127m). Hydro-Quebec will maintain a 45% interest in TM4. 

TM4 designs and manufactures motors, power inverters, and control systems for electric vehicles, offering a complementary portfolio to Dana's electric gearboxes and thermal-management technologies for batteries, motors, and inverters. The transaction establishes Dana as a supplier with full e-Drive design, engineering, and manufacturing capabilities, offering electro-mechanical propulsion solutions to each of its end markets.

TM4 was founded in 1998 by Hydro-Quebec, Canada's largest electricity producer and one of the world's largest hydroelectric power producers. TM4 operates a technology and manufacturing facility in Boucherville, Quebec. Boucherville will remain a centre of excellence, with TM4's current management team and 130 employees remaining in place.

"We are excited to welcome TM4 into Dana's global family and to be partnering with Hydro-Quebec, a leader in the generation of energy that fully comprehends the megatrends surrounding energy efficiency and the rapidly developing electrification infrastructure requirements around the globe," said Dana president and CEO, Jim Kamsickas.

"This joint venture brings together a world leader in mechanical power conveyance and thermal-management technology with an experienced manufacturer of electric motors and inverters to offer a broad range of hybrid and electric vehicle solutions for our customers across all three of our end markets."

For his part, Hydro-Quebec president and CEO, Éric Martel, added:"Transportation electrification is at a turning point. In this context, Hydro-Quebec has initiated a rigorous process to identify the winning conditions that will allow TM4 to reach its full potential.

"Today's announcement strengthens Boucherville's position as a centre of excellence and further confirms our expertise in the sector. We wanted to join an industrial partner to accelerate TM4's market access to become a global leader, to the benefit of all Quebecers. This transaction will strengthen the activities of TM4 in Quebec."

This transaction further strengthens Dana's position in China, the world's fastest-growing market for electric vehicles. TM4 and Prestolite Electric Beijing Limited have a 50-50 joint venture in China, known as Prestolite E-Propulsion Systems Limited, which offers electric mobility solutions throughout China and the ASEAN region.