Oklahoma-based US Highland announced the creation of a new wholly-owned subsidiary which will produce electric vehicles. US Highland says it is in preliminary discussions with an American OEM with proven experience in electric motor technology.

The new subsidiary, US Highland Electric, will tap into an expected growth in demand for electric vehicles. US Highland cites a study by clean technology research group Pike Research which forecasts sales of 466 million electric bicycles and motorcycles worldwide between 2010 and 2016.

“Our primary efforts at US Highland are focused on creating sustainable growth within the Power Sports Industry based on a diversity of both combustion and electric technology for both our OEM and individual Power Sports customers,” says John R. Fitzpatrick, III, president and chief executive officer of US Highland. “Our long term strategy is to provide our customers with premium quality innovative high performance products with unsurpassed customer service.”

US Highland has been developing an electric vehicle for some time now. In June 2010, the company announced it was working with Millennial Research Corporations to develop a motorcycle with magnetic hub motors.