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ELMS and CATL enter agreement that secures battery supply through 2025 for Class 1 Urban Delivery commercial EV

Electric Last Mile Solutions (ELMS), a commercial electric vehicle company focused on redefining productivity and sustainability for the last mile, reached an agreement with leading battery-maker Contemporary Amperex Technology Co., Limited (CATL) to supply batteries and secure production capacity needed for ELMS’ all-electric Class 1 Urban Delivery commercial vehicle. The agreement secures battery supply through 2025.

CATL will provide a 42-kWh lithium-ion battery in the lithium-iron phosphate (LFP) chemistry system, which has demonstrated high safety and reliability, as well as long cycle life. By leveraging CATL’s cell-to-pack (CTP) technology (earlier post), the battery pack’s design improves system energy density, simplifies manufacturing and results in cost savings. Additionally, both sides are collaborating on future battery localization in the US.

ELMS’ first vehicle, the Urban Delivery, is the first Class 1 commercial electric vehicle in the US market. The company expects to begin production of its second vehicle, the Class 3 Urban Utility EV, in the second half of 2022.

Separately, ELMS and Ample, an electric mobility company providing modular battery swapping solutions, announced plans to introduce an industry-first bundled offering that would pair the ELMS’ Urban Delivery Class 1 commercial EV with Ample’s modular battery swapping technology. Through the collaboration, the companies expect to provide ELMS customers with the option to subscribe to turnkey energy and mobility solutions.

Fleets deploying ELMS EVs will be able to opt into an Energy-as-a-Service (EaaS) solution utilizing Ample’s battery swapping technology. Adopting the EaaS solution would lower the initial vehicle cost and allow customers to pay only for the energy they consume.

ELMS and Ample also announced plans to explore a full Mobility-as-a-Service bundle that would allow customers to forgo vehicle ownership entirely and pay for usage by the mile. Such an offering would include comprehensive services, insurance and energy to allow commercial fleets to minimize unplanned downtime and leverage differentiated economic models that drive their top-line revenue growth.

ELMS and Ample plan to offer customer test drives and battery swapping demonstrations in San Francisco using the Urban Delivery Class 1 EV in Q4 of this year. Full rollout of the bundled offering is expected to begin as early as Q2 2022.

According to SNE Research, in 2020, CATL’s EV battery consumption volume ranked Nº 1 in the world for four consecutive years. CATL also enjoys wide recognition by global OEM partners.


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