October 14, 2021
Detroit (Reuters) -US commercial electric vehicle manufacturer Electric Last Mile Solutions Inc (ELMS) announced on Thursday that it has signed a battery supply agreement with China’s Contemporary Amperex Technology Co Ltd (CATL).
The financial terms of the transaction, which will continue until 2025, were not disclosed. CATL batteries power Class 1 small delivery vehicles that ELMS began manufacturing at its Missha Walker, Indiana plant last month.
According to an ELMS spokesman, the two companies are also looking for a US plant where CATL will manufacture battery cells and ship them to the ELMS plant in Indiana for assembly into battery packs.
“We have reached an important milestone in securing battery capacity in a very difficult supply environment,” Rob Song, Deputy Chief Financial Officer of ELMS, said in a statement.
Battery makers are expanding production to meet the surge in global demand as automakers accelerate their transition to electric vehicles to comply with stricter emission regulations aimed at addressing climate change. I am.
CATL, which supplies many global automakers, including Tesla, Volkswagen and General Motors, hasn’t announced where to open its U.S. plant, but bought a facility in Glasgow, Kentucky last year. bottom. In September 2020, Kentucky authorities provided CATL with a potential battery pack plant incentive.
Based in Ningde, China, which already has a US office, CATL previously refused to comment on plans for the US market. President Joe Biden prioritized supporting the deployment of electric vehicles to make the United States compete with China.
Under a contract with ELMS, CATL uses simpler cell-to-pack technology to provide lithium iron phosphate (LFP) batteries. The chemistry of LFP is cheaper and safer than the cobalt or nickel-based cathodes of other batteries.
In August, Troy, Michigan-based ELMS was unveiled in June due to a reverse merger with a special-purpose acquisition company (SPAC), despite the impact of COVID-19 and industry-wide supply chain issues. He said the construction was going well. 1,000 vans this year.
ELMS plans to build a large Class 3 truck in late 2022, following a small van with a starting price of $ 34,000 before federal tax credits.
(Report by Ben Clayman of Detroit, edited by Jonathan Oatis)
Commercial EV startup ELMS signs battery supply contract with CATL
Source link Commercial EV startup ELMS signs battery supply contract with CATL