FILE PHOTO: Electric Last Mile Solution UD-1 Electric Commercial Van This is a photo without a date and can be seen in Auburn Hills, Michigan, USA. Reuters/Ben Kleiman
14 October 2021
DETROIT (Reuters) – US commercial electric vehicle maker Electric Last Mile Solutions Inc (ELMS) announced on Thursday that it has signed a battery supply agreement with contemporary Amperex Technology Co Ltd (CATL) of China.
Financial terms of the transaction, which will continue until 2025, were not disclosed. The CATL Battery Powered Class 1 small delivery vehicle that ELMS began manufacturing at its Misha Walker, Indiana plant last month.
According to an ELMS spokesperson, the two companies are also exploring a US plant where CATL will manufacture battery cells and ship them to the ELMS plant in Indiana for assembly into battery packs.
“We have reached an important milestone in achieving battery capacity in a very difficult supply environment,” ELMS Deputy Chief Financial Officer Rob Song said in a statement.
Battery makers are expanding production to meet increased global demand as automakers accelerate their transition to electric vehicles to comply with stricter emissions regulations aimed at addressing climate change. I am
CATL, which supplies several global automakers including Tesla, Volkswagen and General Motors, has not announced where to open its US plant, but last year bought a facility in Glasgow, Kentucky. Down. In September 2020, Kentucky officials provided a potential battery pack plant incentive to CATL.
Based in Ningde, China, which already has a US office, CATL previously declined to comment on plans for the US market. President Joe Biden made it a priority for the United States to support the deployment of electric vehicles to compete with China.
Under a contract with ELMS, CATL uses simple cell-to-pack technology to provide lithium iron phosphate (LFP) batteries. The chemistry of LFP is cheaper and safer than the cobalt or nickel-based cathode of other batteries.
In August, Troy, Michigan-based ELMS was unveiled in June due to a reverse merger with a Special Purpose Acquisition Company (SPAC), despite the impact of COVID-19 and industry-wide supply chain issues. He said that construction is going well. 1,000 vans this year.
ELMS plans to build a larger Class 3 truck in late 2022 with a smaller van with a starting price of $34,000 before federal tax credits.
(Reporting by Ben Kleiman of Detroit, edited by Jonathan Otis)