Exro and Linamar Corporation sign definitive agreement to
serially produce and commercialize the parties' integrated electric
beam axle product for Class 3-6 vehicles:
- The agreement is set for an initial five-year term and
follows successful continued testing and validation by Linamar of
the Exro Coil DriverTM product samples delivered in Q4
2022
- In accordance with the agreement, by Q4 2023 the parties
intend to build a product demonstration vehicle to be utilized as a
joint marketing asset for the medium duty commercial vehicle
market
- The agreement contemplates the start of series production by
Q4 2024 and includes annual commercial volume targets that build to
25,000 units per annum by 2027
- Linamar is granted exclusivity to Exro's Coil
DriverTM product for use in medium duty Class 3-6
electric beam axle applications
CALGARY,
AB, May 15, 2023 /PRNewswire/ - Exro
Technologies Inc. (TSX: EXRO), (OTCQB: EXROF) (the "Company" or
"Exro"), a leading clean-technology company that develops new
generation power-control electronics that expand the capabilities
of electric motors and batteries, is pleased to announce the
signing of a definitive commercialization agreement ("DCA", or
"agreement") with strategic partner, and global tier-1 automotive
supplier, Linamar Corporation (TSX: LNR) ("the Parties"). The
agreement follows successful testing and validation by Linamar of
the Parties' co-developed integrated electric axle ("eAxle")
utilizing Exro's Coil DriverTM traction inverter and
signals a commitment by the Parties to commercialize the product
for multi-year series production.
Approximately two years ago, Exro and Linamar established a goal
to co-develop a next-generation eAxle utilizing Coil Driver™
technology. In a traditional powertrain, the motor and inverter are
in separate housings on the vehicle chassis. An eAxle combines an
electric vehicle's motor, gears, and inverter into the drive axle
of the vehicle, providing fleets an opportunity to reduce
maintenance requirements and energy consumption, while also
reducing costs and complexity. In Q4 2022, Exro supplied 800V Coil
Driver™ inverter samples designed for integration into Linamar's
eAxle program. Following successful continued testing of the
samples by Linamar through the first half of 2023, the Parties have
progressed to a definitive agreement intended to commercialize the
co-developed eAxle into series production.
"Having worked closely for the last two years, we've witnessed
the progressive evolution of Exro's technology," said Kevin Ledford, Global Vice President of
Electrification (eLIN) at Linamar. "By integrating Exro's
technology into Linamar's full eAxle system, we aim to offer a
cost-effective 4-in-1 eAxle which will reduce the integration
complexity to our customers as well as offer superior performance
to the medium duty truck market beginning in late 2024."
"We are thrilled to achieve this next major milestone with
Linamar," said Exro CEO Sue Ozdemir.
"The signing of the definitive agreement demonstrates steady
progress with a leading tier-1 OEM supplier, further validates the
potential of our technology, and signals to shareholders an
opportunity for a material increase in production volume in the
years ahead. Linamar has been a great partner and we look forward
to advancing this combined product to commercialization."
The agreement is set for an initial five-year term with the
Parties committing to milestones and commercial volume targets. In
accordance with the agreement, by Q4 2023, the Parties intend to
build a demonstration vehicle containing the eAxle product to be
utilized as a joint marketing asset for commercial vehicle
customers. The Parties have committed to investing in their various
areas of responsibility in accordance with the agreement, with the
intention of beginning series production of the eAxle product to
support customer deliveries beginning in late 2024. To this end,
Exro will be investing in finalizing its printed circuit board
(PCB) manufacturing and beginning the capital expenditures for a
final assembly line. Linamar has been granted exclusivity on
Exro's Coil DriverTM inverter for use in medium duty
Class 3-6 electric beam axle applications. Exro maintains the
ability to supply its technology for eAxle products in the Class
1-2 passenger vehicle market, as well as the Class 7-8 heavy duty
vehicle market. Of note, the Linamar partnership is Exro's only
contemplated eAxle platform for Class 3-6 vehicles. Exro maintains
non-exclusivity across all its direct drive Coil
DriverTM partnership applications. The direct drive
partnerships include customers such as SEA Electric, Vicinity, and
others where the powertrain utilizes a motor and inverter direct
drive system versus an eAxle. The agreement does not place
exclusivity restrictions on Linamar, which will continue to work
with other vendors and suppliers to meet its customers'
application-specific requirements.
ABOUT EXRO TECHNOLOGIES
INC.
Exro Technologies Inc. is a leading clean technology company
that has developed new generation power control electronics that
change how the world optimizes energy by expanding the capabilities
of electric motors and batteries. The company's innovative
technologies serve to bridge the performance-cost gap in e-mobility
(Coil DriverTM) and stationary energy storage (Cell
DriverTM), and act to accelerate adoption towards a
circular electrified economy by delivering more with less – minimum
energy for maximum results.
For more information visit our website at www.exro.com.
To view our Corporate Presentation visit us at
www.exro.com/investors.
Visit us on social media @exrotech.
CAUTIONARY STATEMENT REGARDING
FORWARD LOOKING STATEMENTS
This news release contains forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws. All
statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as "plans",
"expects", "estimates", "intends", "anticipates", "believes" or
variations of such words, or statements that certain actions,
events or results "may", "could", "would", "might", "will be
taken", "occur" or "be achieved". Forward looking statements
involve risks, uncertainties, and other factors disclosed under the
heading "Risk Factors" in the Company's 2022 Annual Information
Form (available at www.sedar.com) and elsewhere in filings with
Canadian securities regulators, that could cause actual results,
performance, prospects, and opportunities to differ materially from
those expressed or implied by such forward-looking
statements. Specific risks associated with the DCA include,
but are not limited to order volumes under the DCA do not
materialize as planned, the Company experiencing a significant
delay in sourcing the required capital equipment to support the
DCA, and the Company experiencing difficulties in the set and
commissioning of capital equipment resulting in its inability to
deliver products. Although the Company believes that the
assumptions and factors used in preparing these forward-looking
statements are reasonable based upon the information currently
available to management as of the date hereof, actual results and
developments may differ materially from those contemplated by these
statements. Readers are therefore cautioned not to place undue
reliance on these statements, which only apply as of the date of
this news release, and no assurance can be given that such events
will occur in the disclosed time frames or at all. Except where
required by applicable law, the Company disclaims any intention or
obligation to update or revise any forward-looking statement,
whether as a result of new information, future events, or
otherwise.
This information is qualified in its entirety by cautionary
statements and risk factor disclosure contained in filings made by
the Company with the Canadian securities regulators, including the
Company's annual information form for the financial year ended
December 31, 2022, and financial
statements and related MD&A for the financial year ended
December 31, 2022, filed with the
securities regulatory authorities in certain provinces of
Canada and available at
www.sedar.com. Should one or more of these risks or uncertainties
materialize, or should assumptions underlying the forward-looking
information prove incorrect, actual results may vary materially
from those described herein as intended, planned, anticipated,
believed, estimated, or expected. Although the Company has
attempted to identify important risks, uncertainties, and factors
that could cause actual results to differ materially, there may be
others that cause results not to be as anticipated, estimated, or
intended. The Company does not intend, and does not assume any
obligation, to update this forward-looking information except as
otherwise required by applicable law.
Neither the Toronto Stock Exchange nor the Investment Industry
Regulatory Organization of Canada
accepts responsibility for the adequacy or accuracy of this press
release.
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SOURCE Exro Technologies Inc.