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Quantum Forming Joint Venture with Automaker in China for Hybrid and Alternative Fuel Vehicles and Systems

Quantum Fuel Systems Technologies Worldwide has signed a Memorandum of Understanding to establish a cooperative joint venture with a major automaker in China for the development and commercialization of hybrid and alternative fuel vehicles, manufacture of gaseous fuel components, and integration of advanced propulsion systems.

Subsequently, Quantum’s strategic partner in lithium-ion battery systems, Advanced Lithium Power Inc. (ALP), also signed a Memorandum of Understanding with the automaker to jointly develop battery-dominant propulsion systems for passenger vehicles, with the goal of establishing a cooperative venture to commercialize products globally.

Under the first agreement, Quantum and the Chinese automaker will develop a joint venture in 2007 focused on the development of hybrid vehicles, manufacture of gaseous fuel management components, and distribution of powertrain components.

Quantum has partnered with one of the fastest growing automakers in China, which is now the second-largest automotive market in the world. China is estimated to produce in excess of 7.4 million vehicles in 2007, after several years of double-digit growth.

China is strategically important to Quantum, as we position ourselves as a fully-integrated alternative energy company serving the global marketplace. We believe that this partnership [with the automaker] will accelerate Quantum’s entry into China as a supplier of complete, integrated systems for the growing market for clean vehicles in China to meet government demands to diversify energy resources and mitigate the environmental impact of increasing transportation needs.

Our strategic partnership with ALP enables us to provide fully-integrated powertrain solutions, including advanced energy storage solutions. This joint project...will accelerate the translation our innovative battery technologies into fully validated commercial products for our automotive OEM customers.

—Alan P. Niedzwiecki, President and CEO of Quantum

The Quantum-ALP team was recently selected by the South Coast Air Quality Management District (SCAQMD) to engineer and supply a fleet of plug-in hybrid vehicles based on the Ford Escape Hybrid, for application in Southern California.



I could see something like a dual fuel Honda Civic hybrid. Run with CNG around town and gasoline on longer trips. With the hybrid design and getting better mileage you would get better range with smaller tanks.

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