Vicinity Motor Corp. (TSX-V:VMC) has announced a strategic agreement with Electrovaya Inc. (TSX:EFL, OTCQB:EFLVF) to supply lithium battery systems for its Vicinity Lightning EV buses and fully electric VMC 1200 Class 3 trucks.
The company said Electrovaya is a pioneer in global energy transformation, focused on contributing to the prevention of climate change by supplying the safest and longest-lasting lithium-ion batteries in the marketplace.
The agreement provides it with battery systems that utilize the latest Electrovaya NMC ceramic lithium-ion battery technologies and supports full integration within its line of vehicles, it added.
READ: Vicinity Motor enters EV cutaway market in strategic partnership with Optimal-EV
"Our decision to collaborate with Electrovaya as a strategic supplier followed rigorous engineering and due diligence activities," Vicinity CEO and founder William Trainer said in a statement.
“Sales momentum for our breakthrough Vicinity Lightning EV lines of buses and our new fully electric VMC 1200 Class 3 Truck continues to scale, and this agreement secures our supply chain for the crucial battery component of our platforms. The Electrovaya batteries will provide confidence to prospective customers due to their superior life cycle performance, and peace of mind due to their strong safety standards,” he added.
Vicinity recently released guidance for 2022 and indicated it expects to complete deliveries of over 95 Vicinity Classic buses, 75 Vicinity Lightning EV buses and chassis, 200 VMC 1200 EV trucks, and 300 Vicinity Optimal EVs to drive year-end revenues of over $140 million.
"Our partnership will bring together two leaders in commercial and public vehicle electrification and deliver models at a price point suitable for mass deployment across small and large fleets,” Electrovaya CEO Sankar Das Gupta said.
“Vicinity Motor Corp. offers a highly competitive lineup of electric vehicles for the North American market, and we expect our battery systems to provide an additional competitive advantage to improve their adoption.”
Vicinity Motor is a leading North American supplier of electric vehicles for both public and commercial enterprise use. It leverages a continent-wide dealer network and close relationships with world-class manufacturing partners to supply its market-leading flagship electric, CNG and clean-diesel Vicinity buses, the VMC 1200 electric truck and a Vicinity Optimal-EV shuttle bus.
In addition, it sells its proprietary electric chassis to JB Poindexter subsidiary EAVX, the Company's strategic partner, for upfitting into next-generation delivery vehicles.
Contact the author at stephen.gunnion@proactiveinvestors.com