Cepton, Inc. (NASDAQ:CPTN) announced it has signed a significant Engineering Services Agreement with its Tier 1 automotive partner and shareholder Koito Manufacturing.
The company said that under the terms of the agreement, Koito will provide it will $10 million in engineering services fees for the quarter ended June 30, 2024, in support of a major global OEM program secured by the two companies.
It will support Cepton’s customer-specific product development and program execution for its near-range lidar, which is set to be deployed in the OEM program and by other OEM customers.
“This engagement with Koito comes at a crucial juncture as Cepton prepares to fulfill our new OEM program,” Cepton CEO Dr Jun Pei said in a statement.
“We are thrilled to deepen our partnership with Koito to advance scalable lidar adoption for safety-critical automotive use cases. This exemplifies Cepton and Koito’s shared vision of paving the way to safely deployed autonomy.”
Kotio president Michiaki Kato added: “The agreement not only reaffirms Koito’s confidence in Cepton’s innovative lidar solutions but also underscores Koito's unwavering commitment to industrializing cutting-edge technologies that are poised to reshape the future of mobility, aligning with our vision of ‘lighting the way for our sustainable future.’"