Hillcrest Energy Technologies Ltd (CSE:HEAT, OTCQB:HLRTF) said electromagnetic compatibility (EMC) chamber testing of its Zero Voltage Switching (ZVS) traction inverter completed for a European automotive manufacturer suggests the technology offers "substantial improvements and system-level cost savings" against existing products on the market.
Testing of the ZVS at an external certified laboratory selected by the European automaker was a success, the Vancouver-based company said.
Vehicle traction inverters are crucial components in the drivetrain of electric vehicles and hybrid EVs, managing the flow of energy from the battery pack to the motor.
With stringent EMC regulatory standards in place to ensure electromagnetic interference (EMI) does not disrupt the functioning of EVs electronic systems, Hillcrest noted that EMC is the second most critical property of drive systems after efficiency.
Hillcrest chief technology officer Ari Berger said the EMC chamber testing with the European OEM "showcased our technology's ability to achieve significantly better EMC during all tested operating points compared to existing inverters.
"This breakthrough will allow for a reduction or potential elimination of the expensive and heavy shielding, filters and laminates currently required in high-power systems."
He said the technology's use can extend beyond EVs to many industrial applications, such as heat pumps and power factor correction in server farms where EMI risks can be costly.
"Our ability to greatly reduce EMI without adding additional costs could offer a step-change improvement to these applications and an incredible market opportunity for Hillcrest," Berger said.
Hillcrest also announced an amendment to the $5 million equity facility announced in January, where the two parties have agreed to amend the terms of the agreement so that the 12% annualized interest associated with each drawdown will now be replaced with a 12% drawdown fee, which remains payable in common shares in the capital of the company or by deduction from the funded advance, at the option of the investor.
Hillcrest and the investor have agreed that the number of shares issued for each drawdown, inclusive of the fee, cannot exceed the number of shares issuable based on the cash amount of the drawdown divided by the maximum discount price per share allowed by the policies of the Canadian Securities Exchange.