UPDATE 1-Canada's Electrovaya signs MoU to enter Japanese market

* Signs MoU with Nippon Kouatsu Electric

* Eyes stationary power, smart grid energy storage market

Nov 2 (Reuters) - Electrovaya Inc (EFL.TO), a Canadian battery systems maker, said it signed a memorandum of understanding with Nippon Kouatsu Electric Co. Ltd. (NKE) to enter into the stationary power and smart grid energy storage market in Japan.

Electrovaya plans to develop and sell its integrated advanced battery storage systems with NKE, a maker of power distribution equipment with plants in Japan, China and Vietnam, it said.

"The applications we will address with NKE perfectly complement the capabilities of Electrovaya's electric vehicle division," said Sankar DasGupta, chief executive of Electrovaya.

After the Japanese market, the companies plan to extend their distribution to additional fast growing markets, Electrovaya said.

Shares of Ontario-based Electrovaya closed at 80 Canadian cents Friday on the Toronto Stock Exchange. (Reporting by R. Manikandan in Bangalore; Editing by Gopakumar Warrier)