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XALT Energy in major multi-year contract to supply LTO batteries to HK Group for electric buses in China

XALT Energy (originally founded in 2009 as Dow-Kokam, LLC), a leading developer and manufacturer of lithium-ion batteries, signed a global exclusive agreement with Hybrid Kinetic Group (HK Group) of China for the supply of its Lithium Titanate (LTO) batteries from its manufacturing facilities in Midland, Michigan for all-electric buses in China.

Production is expected to begin during the third quarter of 2015. The multi-year contract, valued at more than $1.0 billion, will create 300 new high-tech and manufacturing jobs in Midland this year. Hiring is underway with 80 positions expected to be filled in April.

XALT’s high quality and cost competitive battery products fit very well with our group’s strategy of launching all-electric public transit buses in large scale with our unique business model. This supply relationship is a fine example of Sino-American energy cooperation.

—Dr. Yung Yeung, Chairman of HK Group

Faced with dire environmental pollution, especially smog, China is taking many steps to reevaluate traditional transportation models supported by fossil fuels. These steps are anticipated to create significant long-term demand for both electric buses in the country’s large and medium sized cities, as well as the batteries that power those buses.

The electric buses will be fully powered by the XALT batteries. Each bus will have 68-100 kWh high performance rapid charging batteries, which can be recharged in less than 10 minutes. These electric buses will be leased to municipal transit operators throughout China.

XALT has enjoyed great support from the US Department of Energy, the State of Michigan, including the Legislature, the Michigan Economic Development Corporation, the Michigan Department of Treasury, and the Michigan Department of Environmental Quality, as well as the City of Midland. XALT will continue to work with these agencies on various programs as it moves forward to bring high-quality jobs to Michigan.

To date, XALT has invested more than $600 million in its fully-automated flexible Lithium chemistry-based manufacturing facility in Midland. The company currently employs 130 people.

XALT develops and manufactures prismatic, large-format lithium-ion battery cells offered in high-energy and high-power versions with capacities ranging from 25 Ah to 75 Ah, as well as battery packs incorporating the cells. XALT is the sole supplier of Lithium-ion batteries for the Formula E race series.

Comments

HarveyD

A surprising contract?

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