Proterra and LG Energy Solution to Partner on Long-Term Supply Agreement For EV Battery Cells
- Proterra to commit upfront a low nine-figure dollar sum to secure long-term supply of cylindrical cells manufactured at LG Energy Solution U.S. plant for industry-leading commercial EV battery technology
- Partnership represents multiple GWhs of dedicated battery cell capacity on an annual basis and will increase Proterra's manufacturing capacity for USMCA-compliant commercial EV battery systems
BURLINGAME, Calif., Aug. 11, 2021 (GLOBE NEWSWIRE) -- Proterra Inc, a leading innovator in commercial vehicle electrification technology, today announced that it has concluded negotiations with LG Energy Solution on a new agreement that will provide Proterra with a long-term supply of cylindrical cells produced at an LG Energy Solution battery cell manufacturing plant in the United States.
The U.S.-manufactured battery cells will be delivered to Proterra factories for the manufacture of the company's industry-leading commercial electric vehicle battery systems. Proterra will commit upfront a low nine-figure dollar sum under the agreement to secure multiple gigawatt hours of dedicated U.S.-manufactured battery cell capacity on an annual basis.
In addition to the U.S.-manufactured battery cells that will be supplied to Proterra under the new agreement, Proterra and LG Energy Solution have extended their existing battery cell supply agreement through 2024. Together, this secures Proterra a stable supply of LG Energy Solution battery cells through 2028.
Both Proterra and LG Energy Solution plan on getting approval by their Board of Directors for the agreement and the investment by Q4 of 2021, respectively.
"As an American technology leader, Proterra is proud to build on our strong relationship with LG Energy Solution to bring battery cell manufacturing to the United States," said Gareth Joyce, President of Proterra Powered & Energy. "The technologies we need to combat the climate crisis and meet the global demand for zero-emission, battery-electric commercial vehicles can and must be built in the U.S. Today's announcement is a significant step forward in this pursuit and Proterra's mission of advancing EV technology to deliver the world's best performing commercial vehicles."
"The collaboration between LG Energy Solution and Proterra will act as a critical milestone in seizing America's eco-friendly commercial vehicle industry, already taking a lead in the global market," said Wonjoon Suh, the Senior Vice President and the division leader of Mobility and IT Battery Division. "LGES will continue to expand our EV battery manufacturing capability in the U.S. and bolster local supply chain to foster clean energy industry in the U.S."
Since 2016, Proterra and LG Energy Solution engineering teams have been collaborating to maximize cell performance to meet the stringent requirements of commercial vehicle markets. The cylindrical cells to be manufactured at the new LG Energy Solution plant will feature a new, high nickel NCMA chemistry ideal for commercial vehicle and industrial applications. With the introduction of cylindrical cells manufactured in the United States, Proterra battery systems will further meet content requirements under the United States-Mexico-Canada Agreement (USMCA).
Designed and manufactured in the United States, Proterra's battery systems have been proven through more than 20 million service miles driven by its transit customers and selected by world-class commercial vehicle manufacturers to electrify delivery vehicles, construction equipment, school buses, coach buses, and more.
About Proterra
Proterra (NASDAQ:PTRA) is a leader in the design and manufacture of zero-emission electric transit vehicles and EV technology solutions for commercial applications. With industry-leading durability and energy efficiency based on rigorous U.S. independent testing, Proterra products are proudly designed, engineered, and manufactured in America, with offices in Silicon Valley, South Carolina, and Los Angeles.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to Proterra's tentative agreement with LG Energy Solution for a long-term supply of cylindrical cells and expected benefits of such agreement. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to significant risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including risks and uncertainties set forth in the sections entitled "Risk Factors" in the Proterra's prospectus dated July 9, 2021 filed with the U.S. Securities and Exchange Commission (the "SEC") on June 29, 2021, and Proterra's annual and quarterly reports and other filings with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. The forward-looking statements included in this press release speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Proterra assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Proterra does not give any assurance that it will achieve its expectations.
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