Exro Signs Product Development Agreement with Global Market Leader for Off-Highway Application of Hybrid Electric Powertrain
The agreement includes development of a new product offering utilizing Exro's next-generation Coil DriverTM automotive inverter technology for a hybrid diesel-electric application
- The European partner, which remains under NDA, is a global leader in the design, manufacture and distribution of solutions in an off-highway sector and is forecast to generate multi-billion dollars in sales in 2022.
- The partnership will develop a new product offering incorporating Exro's Coil-DriverTM and the partner's diesel engine to introduce a hybrid diesel-electric powertrain with applications across a platform of products in the partner's line-up.
- Exro has received a purchase order for product development that includes the supply of multiple initial sample units to be delivered to the customer by the end of Q1 2023.
- On successful customer testing and validation, the development agreement will transition to a series production agreement for 8,000-10,000+ Coil-DriverTM units annually.
- The agreement reflects Exro's ability to scale and serve a variety of applications within the e-mobility sector, highlighting Exro's ability to solve challenges to electrification adoption that include performance increase and cost reduction, and support customers' commitment to a lower carbon footprint and sustainable future.
CALGARY, AB, Oct. 5, 2022 /CNW/ - Exro Technologies Inc. (TSX: EXRO) (OTCQB: EXROF) (the "Company" or "Exro"), a leading clean technology company that has developed new generation power control electronics that expand the capabilities of electric motors and batteries and allows vehicle makers the flexibility to increase performance and reduce costs, announced today that it has signed a new product development agreement with a major global equipment supplier. The partner remains under non-disclosure agreement (NDA), to be named at a future time. The agreement includes development and delivery of an engineered-to-order system incorporating Exro's proprietary Coil-DriverTM inverter for a new hybrid diesel-electric product for off-highway application (for example: agriculture, construction, mining, etc.). The development aligns with Exro's strategy of delivering innovative power control electronics products that help customers improve performance, reduce cost, and lead the way to a sustainable electrified future.
"This new product development is a perfect example of how Exro is innovating solutions with customers that bridge the performance-cost gap to electrification," said Exro CEO Sue Ozdemir. "Our partner is a global leader in its space and looking to evolve its currently fully diesel line-up into the future. A successful development that demonstrates our already proven capabilities in other applications opens a huge door with this yet-to-be-named partner, as well as many other industries with a similar challenge to solve."
Exro's Chief Technology Officer, Eric Hustedt added, "The reality is that due to certain performance requirements, not all applications can easily flip to fully electric today. Moving to a hybrid set-up is a logical next-generation step. The Coil Driver is perfect for this type of application, easily providing the high torque required for starting diesel engines without sacrificing motoring and generating capability once the engine is running. Utilizing the unique features native to the Coil Driver, the customer can operate the diesel-electric powertrain at optimal efficiency for better performance and lower emissions, while experiencing significant fuel savings versus straight diesel."
Product Development Agreement for New Hybrid Diesel-Electric Application
Exro has been collaborating with the major European-based company under NDA to develop a hybrid diesel-electric powertrain, a new product offering for the partner's vehicle line-up. The agreement will begin with the supply of multiple sample units to be delivered to the customer by the end of Q1 2023. After successful testing and validation, it is anticipated that the development agreement would transition into an agreement to supply the NDA partner with series production products beginning in 2024. The conditional agreement is highlighted by projections of 8,000-10,000+ units annually.
Exro's proprietary Coil DriverTM provides the unique ability to deliver the high starting torque required to first get a large diesel engine running. Once running, the hybrid system can then operate at high-efficiency, high-speed mode for motor generator operation, switching between diesel and electric. Due to the hybrid capability, manufacturers can utilize a smaller machine and smaller drive to achieve the same desired operating characteristics as a larger diesel-only setup, which equates to vehicle cost savings, significant fuel savings, and a substantial reduction in carbon footprint.
Exro's Coil Driver™ – New Generation Technology for e-Mobility
An electric motor is only as smart as the controller telling it how to behave. At Exro, our theory is that if we make the controller smarter, we can increase the performance of the entire powertrain. Exro accomplishes this with a new generation of power control electronics called the Coil DriverTM.
The Coil DriverTM takes the prior-art physics of coil-switching and provides the ability to control an electric motor at the individual coil-level through the power electronics embedded in the inverter. This coil-level control provides the ability to switch motor profiles in real-time to deliver two separate speed-torque profiles from the same motor, effectively expanding the operating range of the motor by functioning like an electronic gear. This allows manufacturers significant flexibility in design: Exro's technology can increase performance by up to 50% for a marginal cost increase or can optimize the system to reduce the weight, complexity, and up to 20% cost savings of their powertrains without sacrificing performance.
Exro's Coil DriverTM technology is now proven, independently validated through AVL, one of the world's largest independent automotive laboratories, and earlier this year received the Edison Gold Award for Best New Product in Manufacturing, Logistics and Transportation. Series production of the Coil DriverTM will begin from Exro's world-class net-zero targeted automotive manufacturing facility in Calgary, Alberta beginning in Q3 2023, offering customers the security of North American supply for up to 300,000 units per year. Over the coming quarters, Exro plans to continue to backfill the facility production capacity building on the three purchase orders (backed by multi-year sales agreements) announced over the last several months in addition to the new product development agreement announced today to de-risk visibility to significant revenue ramp-up.
The management team of Exro continues execution on behalf of shareholders to deliver innovative products that fundamentally change how the world optimizes energy in vehicle systems and stationary energy storage. Exro's technologies expand the capabilities of electric motors and batteries and serve to bridge the performance-cost gap and accelerate adoption towards a circular electrified economy and sustainable future for our planet.
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 and stationary energy storage, 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.
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" and elsewhere in the Company's 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. 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 times 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, 2021, and financial statements and related MD&A for the financial year ended December 31, 2021, 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 which 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.
SOURCE Exro Technologies Inc.
Investor inquiries: [email protected]; Canada investors: Jake Bouma at 604-317-3936; United States investors: Vic Allgeier at 646-841-4220; Media inquiries: [email protected]
Share this article