Hillcrest Energy Technologies Ltd (CSE:HEAT, OTCQB:HLRTF) told investors it is in active discussions with a prominent European original equipment manufacturer (OEM) on the structure of a joint development agreement.
In a shareholder update, Hillcrest said the discussions follow the successful conclusion of the latest phase of co-development activities with the OEM, with the results meeting or exceeding the expectations laid out in the pre-testing criteria. Future development and proposed testing will include broader system development and in-vehicle focuses, it added.
The Vancouver-based clean technology company said it will also enter the third phase of dynamic load demonstration testing with a global tier-one automotive supplier in January 2024 after successfully completing the first two milestones.
Following the third phase, the two companies will proceed to on-site demonstrations at the customer's facilities. Successful completion of all milestones is expected to lead to a definitive commercial agreement, Hillcrest said.
Meanwhile, preparations are underway for advanced demonstration testing of Hillcrest's ZVS-enabled traction inverter with a global motor supplier and Hercules Electric Mobility after it expanded the scope of the opportunity with Hercules through the introduction and inclusion of the global motor supplier.
A revised testing and development plan after the inclusion of the global motor supplier now offers two potential commercial opportunities, including testing at the supplier's facility as well as integration and demonstration of the Hillcrest traction inverter in a Hercules recreational e-boat.
Supported by development funding of up to $130,000, the company said the two-phase demonstration program is expected to be completed by the end of the first quarter of 2024.
Additional commercial engagements
Hillcrest said exploratory discussions are also underway with several electric vehicle manufacturers and suppliers following recent business trips to the UK.
"The United Kingdom has established very aggressive zero emission vehicle requirements, and we intend to position Hillcrest's ZVS technology as a key enabler for manufacturers looking to meet these requirements,” commented the company’s CEO Don Currie.
“Now is the time to leverage the incredible momentum we've achieved with our new potential commercialization partners in the United Kingdom, and we intend to continue aggressively pursuing these opportunities.”
Hillcrest noted that its proprietary ZVS technology platform has demonstrated substantial improvements in system-level efficiency, performance, and reliability for electric systems such as electric vehicles and stationary energy generation and storage systems.
Based on these results, it said the combined benefits of the technology could generate up to US$2,200 per vehicle in EV cost of materials savings.
"Now that we've completed several rounds of demonstration testing with our current commercial prospects, we better understand their specific needs and can tailor our value proposition and testing programs to meet their goals,” Hillcrest chief commercialization officer James Bolen added.
“This will allow us to move more quickly toward commercial supply agreements."
Hillcrest said recent efforts to expand investor outreach to new markets in the UK, Europe, and Australia have created interest, providing exposure to new investors.
The company said it is particularly focused on strategic investments from industry partners, institutional investors and family offices.
Hillcrest is a clean technology company focused on providing advanced power conversion technologies and digital control systems for next-generation powertrains and grid-connected renewable energy systems.
Contact the author at stephen.gunnion@proactiveinvestors.com