Nov 17, 2020 - 03:31 pm

Lion Electric orders $234 million of bus batteries from Romeo Power

lion-electric-lion8-electric-truck-elektro-lkw

US battery manufacturer Romeo Power has received a major order from Canadian e-commercial vehicle manufacturer Lion Electric. Under the terms of the contract signed by both parties, Romeo will supply battery modules and packs for Lion Electric’s electric trucks and electric buses.

The agreement covers Lion Electric’s entire fleet of all-electric buses and trucks in classes 6 to 8 (from 8.84 tons) and is expected to provide Romeo Power with estimated sales of $234 million over a five-year period starting in 2021. According to Romeo boss Lionel Selwood Jr., this is his company’s eighth production contract – and by far the largest: The deal doubles the revenues previously agreed to in the contract.

Romeo Power has a production facility in Los Angeles with a capacity of 7 GWh and announced its IPO in October. Last year, US supplier BorgWarner also invested 50 million dollars in Romeo Power against the backdrop of setting up a joint venture. BorgWarner holds a majority of 60 per cent in the joint venture, in addition to a direct holding of 20 per cent in Romeo Power Technology. BorgWarner intends to close the “supply gap between manufacturers of battery cells and buyers of hybrid and electric vehicles” through close integration with Romeo Power.

Romeo Power has also entered into another cooperation agreement with The Heritage Group, a provider of environmental and recycling services. The Heritage Group is one of the early investors in the Californian startup and is now aiming to develop a joint recycling facility for batteries from Romeo Power’s range as part of the intensified cooperation. In addition, The Heritage Group is planning a project to convert more than 500 diesel trucks to electric trucks by 2025 using batteries from Romeo Power.

For its part, Lion Electric has recently entered into a partnership with ABB. ABB will make its complete portfolio of charging solutions available to the Canadian manufacturer for distribution in North America under the new Lion Energy division. Lion Electric is best known in North America for its electric school buses. Based in Saint-Jérôme in the Canadian province of Quebec, the company says it has now delivered more than 300 fully electric school buses in the USA and Canada. In 2018, the manufacturer announced the expansion of its range to include a whole series of additional electric commercial vehicles. Since then, the portfolio has grown to include all-electric trucks in weight classes 5 to 8, i.e. models with a gross vehicle weight from 7.2 tons.

businesswire.com

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Found on electrive.com
https://www.electrive.com/2020/11/17/lion-electric-orders-bus-batteries-from-romeo-power/
17.11.2020 15:05