The Canadian commercial vehicle manufacturer Vicinity Motor has entered into a strategic supply agreement with the battery manufacturer Electrovaya, also based in Canada. Electrovaya is to supply the lithium-ion batteries for the ‘Lightning’ electric buses and the VMC 1200 Class 3 truck.
Vicinity Motor does not provide details on the agreed delivery quantities and the financial scope of the strategic partnership in the announcement. However, it is said to be lithium-ion cells with NMC chemistry. As part of the cooperation, Electrovaya will also support the vehicle manufacturer in integrating the batteries into the respective vehicles.
“Our decision to collaborate with Electrovaya as a strategic supplier followed rigorous engineering and due diligence activities,” says William Trainer, founder and CEO of Vicinity Motor. “Sales momentum for our 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 with prospective customers with a superior lifecycle performance and peace of mind with respect to safety.”
Vicinity Motor is based in Aldergrove near Vancouver in British Columbia, while Elektrovaya is based further east in Mississauga in the province of Ontario. “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,” says Sankar Das Gupta, Electrovaya’s president and chief executive officer.
Electrovaya, however, is not Vicinity Motor’s exclusive battery supplier: in June, the Canadian company had ordered electric bus batteries from the German medium-sized company Lion Smart – a follow-up order after an initial order in 2020.
Incidentally, Vicinity Motor has only borne this name since this spring. Previously, the Canadian manufacturer was active under the name Grande West Transportation Group.
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